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New Bill May Discourage Adoption of POS in Nigeria - 50 Naira Stamp Duty

Nov 28, 2019 05:04 PM
New Bill May Discourage Adoption of POS in Nigeria - 50 Naira Stamp Duty Africa Business Radio, Point of Sales, Nigeria, Africa Business News, POS, Finance Bill, Stamp Duty


The Nigerian government has reviewed its policy on stamp duty charges, levied on electronic payments. The new proposed finance bill disclosed that the N50 stamp duty charge would now be levied on electronic payments above N10,000 as against payment above N1,000. The finance bill is a plan by the Federal Government to revamp tax administration in the country by introducing various tax increment. However, the new bill exempts bank transfers between two accounts owned by the same person or organization from stamp duty charges. The bill repeals a provision of the Stamp Duty Act 2014 which holds the threshold for receipts chargeable with stamp duty as N4 and above.the Central Bank of Nigeria (CBN), through a circular released on the 17 of September, which majorly affected Point of Sale transactions, authorized banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions. The directive, which took effect immediately, was widely rejected by industry stakeholders and Nigerians at large, with concerns that the policy would stern the cashless economy and financial inclusion agenda of the government. Meanwhile, in recent developments, some merchants had upgraded their POS machines to automatically charge N50 for transactions above N1,000 to avoid the occasional backlash that comes with seeking customers’ consent before adding the charge manually during POS payments.

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