Nigeria Will Stop Paying N50 On POS Transactions Above N1,000 Next Year - FG

The Federal Government has reviewed its policy on stamp duty charges, levied on electronic payments.

This is captured in the new proposed finance bill, presently with the Senate. The new bill ensures that the N50 stamp duty charge will now be levied on electronic payments above N10,000 as against payments above N1,000. 

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.

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, during a panel session at the PwC Executive Session on Finance Bill and Tax Strategy, confirmed the Finance Bill will become effective on January 2, 2020.

So effectively, from next year the N50 charged on POS transactions above N1,000 will cease. It will now be charged on transactions above N10,000.

This is good news for Nigerians and Merchants who have hitherto been made to bear the brunt of this extra charge. Many Nigerians have resorted to withdrawing cash in order to avoid this charge which against the cashless policy of the CBN.

As expected, the introduction of N50 stamp duty on individual transactions above N1000 has led to a reduction in the number of electronic payments processed by agents of banking service providers on a daily basis.

Many filling stations have introduced the same N50 stamp duty charges on payment above N1,000 on PoS terminals and web platforms.

The finance bill is a plan by the Federal Government to revamp tax administration in the country by introducing various tax increment and expected to become law before the new year.