Amanze Chinonye
The Nigeria Revenue Service (NRS) has dismissed media reports suggesting that a new Value Added Tax (VAT) on banking services and electronic transfers has been introduced, describing such claims as misleading.
In a press release, the NRS emphasized that VAT has long applied to fees, commissions, and charges on services rendered by banks and other financial institutions, under Nigeria’s existing tax framework. The agency clarified that the Nigeria Tax Act did not create a new tax obligation on customers for mobile transfers, USSD transactions, or other banking services.
“The claim that VAT has been newly introduced on banking fees, commissions, or electronic money transfers is categorically incorrect,” the NRS stated. The agency urged the public to rely on official communications for accurate and up-to-date tax information and to disregard misinformation circulating in some media outlets.
Join our WhatsApp ChannelREAD ALSO : 7.5% VAT Hits Mobile Transfers, USSD Payments in Nigeria Starting January 19
According to experts, the NRS statement confirms that the tax is not new, but rather a continuation of the existing VAT regime applied to financial service charges.
While the government has directed banks and fintech operators to ensure compliance in collecting and remitting VAT, the NRS stresses that no additional tax burden has been introduced on Nigerians beyond what has already existed under law.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
