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Nigerians will start paying N50 stamp duty for electronic receipts as the Federal Government expands its revenue sources amidst the economic fallout of the coronavirus pandemic. It was reported that Nigerians will be charged N50 once there's a notification of transaction - regardless the medium of the electronic. Banks will serve as the collector for the Federal Inland Revenue Service (FIRS).
According to a circular by FIRS and seen by AllNews, the N50 will be charged for transfers and money deposited above N10,000. The charge will affect individual-to-individual, corporate-to-corporate transactions, as well as transactions between corporate and individual(s).
No Electronic Channel Excluded
The circular signed by FIRS’ Executive Chairman, Muhammad Nami, stated that the N50 charge will affect all forms of receipt communication; SMS and messages on any electronic platform such as emails and Whatsapp messages, POS receipts, and ATM print-outs, “POS receipts, fiscalised device receipts, Automated Teller Machine (ATM) print-outs.” the circular disclosed.
The tax agency's circular reads, “Any electronic receipt for, or electronic transfer of, money deposited with any bank or with any banker in any type of account of an amount from N10,000 upwards shall attract a singular or one-off duty of the sum of N50.
“Stamp duty upon receipt (written, printed or in electronic form) for transactions between corporate bodies or between a corporate body and an individual, group or body of individuals, which amounts to N10,000 and above, shall be denoted by payment of N50 per receipt to the service.”
Services FIRS Will Be Charging N50 From
According to the circular, the FIRS will charge the N50 on services on fixed duty instruments such as Power of Attorney, Certificate of Attorney, Proxy forms, Appointment of receivers, Memorandum of Understanding, Joint Venture Agreements, Guarantors form, Ordinary agreements and Receipts.
Other services to be charged are Ad-valorem instruments such as; Tenancy or lease agreements, legal mortgage or debentures, Sales agreements and Deed of assignments, the circular reads. These are the services that the FIRS will charge the N50 on once there's a form of electronic acknowledgment of money transactions.
Meanwhile, FIRS said in the circular that it is the only authority charged with the power to impose, charge, and collect duties upon services specified, “the Federal Inland Revenue Service is the only competent authority to impose, charge, and collect duties upon instruments specified in the schedule to this act if such instrument relates to matters executed between a company and an individual, group or body of individuals.”
FG Continues Revenue Generation Crusade
Since last year, the Federal Government has been trying to double its revenue generation by expanding its revenue sources. From an increase in Value Added Tax (5 per cent to 7 per cent), to expanding the tax bracket and moving to increase electricity tariff, the government has been trying to solve its revenue problem.
However, the effort to increase revenue by the President Muhammadu Buhari-led administration has been dealt a blow by the coronavirus pandemic, with businesses shutting down, forex sources like Aviation and Banking sector being impacted negatively by the lockdown measures implement.
The new development by FIRS has shown that the government has continued from where it left off. The revenue generation crusade by the government has continued in 2020 with the N50 stamp duty on transfers or deposits on bank transactions above N10,000.
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