List of 16 items exempted from cybersecurity tax beginning mid May
By Jeph Ajobaju, Chief Copy Editor
Sixteen items are exempted from the new cybersecurity levy announced by the Central Bank of Nigeria (CBN) to begin around the middle of May, against the wishes of citizens who lament being robbed of purchasing power partly because of over taxation.
A circular the CBN sent to banks on Monday said they should begin enforcement of the tax two weeks from May 6, the day the circular was issued.
“Deductions shall commence within two weeks from the date of this circular for all financial institutions and the monthly remittance of the levies collected in bulk to the NCF account domiciled at the CBN by the fifth business day of every subsequent month,” it added.
Items exempted from the levy include loan disbursements and repayments, salary payments, intra-account transfers within the same bank or between different banks for the same customer, intra-bank transfers between customers of the same bank.
Below is the full list of the 16 items exempted:
1. Loan disbursements and repayments
2. Salary payments
3. Intra-account transfers within the same bank or between different banks for the same customer
4. Intra-bank transfers between customers of the same bank
5. Other Financial Institutions (OFIs) instructions to their correspondent
6. Banks Interbank placements
7. Banks’ transfers to CBN and vice-versa
8. Inter-branch transfers within a bank
9. Cheques clearing and settlements
10. Letters of Credit (LCs)
11. Banks’ recapitalization related funding – only bulk funds movement from collection accounts
12. Savings and deposits including transactions involving long-term investments such as Treasury Bills, Bonds, and Commercial Papers.
13. Government Social Welfare Programs transactions e.g. Pension payments
14. Non-profit and charitable transactions including donations to registered nonprofit organisations or charities.
15. Educational Institutions transactions, including tuition payments and other transaction involving schools, universities, or other educational institutions.
16. Transactions involving bank’s internal accounts such as suspense accounts, clearing accounts, profit and loss accounts, inter-branch accounts, reserve accounts, nostro and vostro accounts, and escrow accounts.
__________________________________________________________________
Related articles:
Bill to bar tax dodgers from elective office gets support from APC, LP
__________________________________________________________________
 to begin around the middle of May){kind=link}