Here are all the tax categories and bands to pay amid hardship
By Jeph Ajobaju, Chief Copy Editor
Nigerians North and South are loudly railing against the latest cybersecurity levy imposed by the administration of Bola Tinubu in the face of the current great hardship, particularly as it is public knowledge that public funds are brazenly stolen by federal, state, and council government officials with sickening impunity.
Citizens are already paying four categories of levies in eight bands for electronic financial transactions but the numbers will rise to five categories in 13 bands when the cybersecurity tax comes into effect two weeks after May 6, the date the Central Bank of Nigeria (CBN) gave in its latest circular to banks.
Payment for any of the total 13 tax bands depends on the category of transaction and the naira amount involved.
It is reported that 40 per cent of the proceeds from the new levy will be warehoused in the office of National Security Adviser Nuhu Ribadu.
The CBN cited the Cybercrimes (Prohibition, Prevention, Etc.) Act 2015 to back the new directive in the circular it issued on Monday and said banks should begin deducting the tax two weeks from that day.
Below are the five categories and 13 tax bands of electronic financial transactions:
1. Cybersecurity levy (0.5% on every transaction) – five bands
- N5 on transaction of N1,000
- N50 on N10,000
- N500 on N100,000
- N5,000 on N1,000,000
- N50,000 on N10,000,000
2. Transfer fee – three bands
- N10 on transaction below N5,000
- N25 on amount between 5,001 and N50,000
- N50 on transactions above N50,000
3. Stamp duties – one band
- N50 on amount between N10,000 and N10,000,000
4. Short Messaging Service (SMS) – one band
- N4 on each electronic transfer notification
Applicable only to customers on eligible electronic transactions. Those who opt for e-mailing services are not charged.
5. Value Added Tax (VAT) – three bands
- N0.75 charged on N10 transfer fee
- N1.875 on N25 transfer fee
- N3.75 on N50 transfer fee
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