Following the rejection and backlash received from Nigerians, especially industry stakeholders, the Federal Government has reviewed the N50 stamp duty charges on electronic payments in the country.
The Financial Bill which is currently before the National Assembly stated that the N50 charge would be imposed on transactions above N10,000 as against payment above N1,000 that had taken effect across the country in September 2019.
The bill exempted bank transfers between two accounts owned by the same person or organization.
The new bill aims to repeal a provision of the Stamp Duty Act 2014, which had a threshold for receipts chargeable with stamp duty as N4 and above.
You may recall that the Central Bank of Nigeria (CBN) on September 17, 2019, authorized commercial banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions.
The banks were initially asked to charge POS duty of N50 for services rendered in respect of electronic transfers and teller deposits from N1,000 and above on behalf of the Nigeria Postal Service.
The directive was however condemned by mobile money agents, retailers, merchants and bank customers who said it would discourage the cashless policy of the Federal Government.
While some merchants had started charging customers N50, others had stopped using the terminals due to the refusal of customers to pay the extra charges.