₦airaland Forum

The Federal Government (FG) has commenced the implementation of the N50 Electronic Money Transfer Levy (EMTL) on transactions of ₦10,000 and above conducted through financial technology (fintech) companies such as Opay, Moniepoint, Kuda, and others. Introduced under the Finance Act 2020, the EMTL is a one-off levy charged to the recipient of any electronic receipt or transfer of ₦10,000 or more.

Initially slated to take effect from September 9, 2024, its implementation was delayed until December 1, 2024, following public opposition. Various groups, including the National Association of Nigerian Students (NANS), had urged the Federal Government to reconsider the levy, citing economic hardships faced by Nigerians. In compliance with directives from the Federal Inland Revenue Service (FIRS), fintech companies have now begun deducting the levy. Notifications sent to customers by fintech platforms confirm that the levy is now active.

Opay, in a message to its users on Saturday, December 1, reiterated its compliance with FIRS regulations, stating:
“Dear Customer, in line with the FIRS, the EMTL applies starting from December 1, 2024.”
The company clarified that the deductions are remitted entirely to the federal government and that it does not benefit from the charges. Click

Similarly, Moniepoint announced the commencement of the levy deductions in a notice to its customers, explaining:
“Dear customer, you will be charged stamp duty of ₦50 on inflows of ₦10,000 and above. Moniepoint collects and remits this on behalf and to FIRS.”
This development has sparked renewed criticism, with many Nigerians expressing concerns about the impact of the deductions on already strained personal and business finances. While the EMTL aims to generate additional revenue for the government, its implementation underscores the growing burden of levies on electronic transactions in the country.

The full interview is worth sharing here.

Best time for the tax bills is now - Taiwo Oyedele https://t.co/lzRPGPzcBd pic.twitter.com/1EJULJkUjf

— • (@aliyuyahas) December 1, 2024

SULBELL:
in the midst of the Tax reform bill controversy, the deduction of the N50 Electronic transfer levy for transactions above N10,000 have started across Fintech payment platform.

This begs the question how this will encourage cashless policy?

It is regressive in my own opinion. A peasant receiving N10,000 is parting away with 0.5% of his income while a well-established business receiving N100,000 will be parting away with only 0.05%.

This will discourage cashless policy on many fronts.


Source:
https://abntv.com.ng/news/fg-begins-n50-electronic-levy-deductions-on-transactions-via-fintech-platforms/

brightjohnysky:
Tinubu's new Tax Reforms Summarized

1. Any business with less than N50million turnover are exempted from tax payment.

2. over 90% of workers in public and private sector will no longer pay income tax.

3. Over 82% of what low income persons consume will be VAT free.

4. scrapping over 50 nuisance tax suffered by local businesses.

5. VAT will no longer be calculated base on where the companies have their headquarters but where their goods are consume.

6. the rich to pay more tax while the poor will stop paying taxes..

7. Consumption tax collected by states will be eliminated completely.

8. FG share of VAT to reduce from 15% to 10% as states and LGAs now get 90%.

9. Those earning less than N1.7m monthly will now pay less income tax.

10. Customs, NUPRC and other govt agencies will no longer collect tax as only one Agency will be responsible for collection of all taxes in NGR.

11. Those receiving less than N9million per anum could have their income tax cut by half.

12. The bill could lead to abolition of other multiple tax laws like the stamp duty act.

13. Over 90% of small business would no longer pay profit tax.

14. Gradual increase of VAT from 10% in 2025 to 15% in 2030... With almost every goods consume by low income earners exempted from VAT.

15. Many NGR companies pay over 60 types of different tax & levies... The bill seeks to end this factor killing NGR industries.

You may not like the messengers, but the message is a good one.

dynicks:
Chai!...where do we go from here ?

Una sure say this man(Tinubu) really dey pray " Our Lord's prayer"?

Cus if he does, he surely would be very concerned and conscious about the part that said "give and leave us this day; our daily bread" in other words, it means - be easy on us make we for see strength hustle today's bread and make d bread sef catwalk into our lives very easily......

Why this man dey use vex and strong hands dey hunt us like this?..

SULBELL:
in the midst of the Tax reform bill controversy, the deduction of the N50 Electronic transfer levy for transactions above N10,000 have started across Fintech payment platform.

This begs the question how this will encourage cashless policy?

It is regressive in my own opinion. A peasant receiving N10,000 is parting away with 0.5% of his income while a well-established business receiving N100,000 will be parting away with only 0.05%.

This will discourage cashless policy on many fronts.


Source:
https://abntv.com.ng/news/fg-begins-n50-electronic-levy-deductions-on-transactions-via-fintech-platforms/

jmoore:
I wanted to transfer 10,000 naira into one of my accounts, I decided to make it 9,999 naira. Timlubu don jam nwa aba.