The Chartered Institute of Taxation of Nigeria (CITN) has dismissed reports that bank balances are taxed under Nigeria’s new tax regime, saying only certain electronic transfers attract a ₦50 stamp duty.
CITN Chairman Ben Enamudu, who spoke in an interview with Arise TV on Tuesday, stated that the tax reforms are designed to shield low-income earners.
According to him, misinformation about the reforms, particularly around bank transfers and income thresholds, has led to undue concern among Nigerians.
“The narrative out there, which is the wrong narrative, is that the money in your bank account will be taxed. There is no provision for that in our tax laws. Nobody taxes the money in your bank account.
“When you make transfers from your account to someone else, there is a ₦50 stamp duty that applies. However, if you maintain multiple accounts within the same bank, you are not expected to pay the stamp duty.
“Before now, both the sender and the receiver bore the burden of the stamp duty. But with the new tax reform, only the sender pays.
“Salary accounts and payment of salaries are exempted from stamp duty. Transfers below ₦10,000 are also exempted. Once it hits ₦10,000, you pay the ₦50 charge,” Enamudu said.
Speaking further, the CITN Chairman disclosed that transfers between personal accounts held in different banks still attract stamp duty.
“Once it crosses one financial institution to another, the stamp duty is triggered, even if it is your own account,” he shared.
Enamudu further revealed that essential goods and services remain exempt from value-added tax.
“You don’t pay VAT on basic food items, medicals, pharmaceuticals, education and other essentials,” he said.
