Point-of-sale (POS) terminal operators increased their fees on Monday following the Federal Inland Revenue Services (FIRS) introduction of the N50 Electronic Money Transfer Levy, which is applied to any electronic inflow of N10,000 or more.
Following the Federal Government Stamp Duty Act, several fintech platforms informed their users on Sunday that they would begin collecting N50 as an Electronic Money Transfer Levy, which would be sent to the Federal Inland Revenue Services.
PalmPay, addressing its customers, stated: “Dear Valued Customer, In accordance with the Electronic Money Transfer Levy regulation of 2022, an N50 levy will be charged on transfers of N10,000 or more paid into your PalmPay account from November 30th, 2024, as mandated by the Federal Inland Revenue.
“Please note that PalmPay does not benefit from this levy, it is remitted directly to the federal government. PalmPay continues to offer unlimited free transfers to any bank account. We are dedicated to providing affordable and accessible financial services to our valued customers,” the FinTech company added.
Continuing, according to a mail available to BrandSpur banking and finance news, Moniepoint penned: “Please be informed that in compliance with the Federal Government Stamp Duty Act, you would be charged an Electronic Money Transfer Levy of N50 by the Federal Inland Revenue Services on any electronic inflow of N10,000 and above.
“FIRS charges you N50 for inflow received in your Moniepoint personal banking account. Moniepoint does not benefit from this but receives and remits this sum to FIRS,” Moniepoint added.
It made it clear that all electronic inflows of N10,000 or more are subject to the fee, except those that occur between identical users’ Moniepoint accounts. Mobile money, internet banking, and other electronic inflows of N10,000 or more are subject to the N50 Electronic Money Transfer Levy.
Customers of OPay received a brief notification on the app that reads: “Dear customer, in line with the FIRS, the EMTL applies starting December 1st, 2024.”
The Finance Act 2020, which broadened the list of dutiable instruments under the Stamp Duties Act to cover electronic transactions, was the first legislation to impose the Electronic Money Transfer Levy. The Finance Act of 2020 established the Electronic Money Transfer Levy, and the regulations govern its implementation, administration, collection, and remittance. One of the main stipulations is that the recipient of any electronic receipts or transactions totaling N10,000 or more would be subject to a one-time N50 fee.
Kazeem Adewale, a point-of-sale operator in the Arepo region of Ogun State, said in Yoruba that he had been attempting to explain to clients the rationale for the increase in fees since yesterday and was barely handling irate patrons.
He went on to say: “I have been explaining and it is tiring. Customers think you want to cheat them but all of us here have had to increase our charges because of this new levy.”
A consumer in Lagos’ Ikotun neighborhood reported that as of Monday, there had been no rise in fees. Deborah Attah, another client, stated: “They charged me N600 for N20k when it used to be N400. N5,000 is now N150and N10,000 is N300.”
Furthering, customers of the bank also complained about the increase in POS fees on social media. Sam Addai, an X social media platform user, bemoaned: “E levy is one of the most obnoxious taxes. How are we being ‘punished’ for choosing digital money transfers over cash transactions?”
6xstem, another user, penned: “Electronic Transfer levy is criminal! Electronic Transfer levy is robbery in broad daylight. Stealing from the citizens indirectly is insane!”
Marcel Okeke, the former Chief Economist at Zenith Bank, disclosed his stand that the decision was ill-timed and might have serious negative effects on the economy, especially in the fintech industry, which has been expanding quickly in recent years.
He went on to say: “The Federal Government’s move to impose an N50 levy on fintech transactions is driven by a desire to boost revenue. However, this approach may have unforeseen consequences. By targeting digital transactions, the government may inadvertently discourage people from using these services, leading to a demonetisation of the economy.”
Nigerians however, responded to the levy’s initial introduction in September, particularly on social media, where they said that the government was constantly taxing its people without making any real progress or holding them accountable for how the money was being spent. Implementation was rescheduled for December 1st after it was suspended.
