Following the backlash from Nigerians and industry stakeholders, the Nigerian government has reviewed its policy on stamp duty charges levied on electronic payments.
The proposed finance bill before the National Assembly requires that the N50 stamp duty charge would now be levied on electronic payments above N10,000 as against payment above N1,000. The finance bill is a plan by the Federal Government to revamp tax administration in the country by introducing various tax increment
The new bill exempts bank transfers between two accounts owned by the same person or organization from stamp duty charges. The bill repeals a provision of the Stamp Duty Act 2014 which holds the threshold for receipts chargeable with stamp duty as N4 and above
The Central Bank of Nigeria (CBN), through a circular released on the 17th of September, which majorly affected Point of Sale transactions, authorized banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions.
The directive, which took effect immediately, was widely rejected by industry stakeholders and Nigerians at large, with concerns that the policy would stern the cashless economy and financial inclusion agenda of the government.
Meanwhile, in recent developments, as published on Nairametrics, some merchants had upgraded their POS machines to automatically charge N50 for transactions above N1,000 to avoid the occasional backlash that comes with seeking customers’ consents before adding the charge manually during POS payments.
According to Nairametrics, The new N10,000 limit would have some of the following consequences.
- The increased limit would improve POS usage and prevent a total boycott of POS by small businesses/retailers.
- The new limit might assist the government put a balance in its quest to make the economy cashless and improve tax revenue.
- This might also reduce the number of customers requesting to pay in cash, shifting the tax burden to large and heavy shoppers.
SPONSORED: CALL FOR SMALL GRANT APPLICATION
Women United for Economic Empowerment (WUEE) is a non-governmental organization with a mission to promote women/children rights, human development to the rural/urban poor women, youth, children and other vulnerable groups. WUEE in partnership with United Nations Democracy Fund (UNDEF) announces a Call for small grant application for interested and eligible CSOs/CBOs in Rivers and Akwa Ibom States, on STRENGTHENING GOOD GOVERNANCE AND DEMOCRATIC PROCESSES AT THE LOCAL LEVEL IN NIGERIA
Purpose for Fund
The project seeks to increase the capacities of 20 civil CSOs/CBOs and Local Government Chairmen in order to help them fulfill their roles and responsibilities more effectively in a democratic system. It is meant to strengthen good governance and democratic processes at the local level in Nigeria and to increase citizen participation. The project shall be conducted in Rivers and Akwa Ibom States. Trained representatives of selected CSOs and CBOs shall in conjunction with local stakeholders organize civic education programs for Twenty Thousand (20,000) local citizens in their local communities (1,000 per CSO/CBO), in order to promote citizens’ understanding and participation in the democratic processes.
- Be Not-for-profit organizations.
- Have expertise in governance programming.
- Have presence in the Local Government/community in which the program will be conducted.
- Be registered with the Corporate Affairs Commission (CAC).
- Have a track record of working with indigenous women, youth, persons with disabilities (PWD).
- Be willing to comply with all technical and financial requirements for participation in the program, including reporting and documentation of project activities, communication strategy and capacity development opportunities.
- Be willing to participate in assessments, trainings, workshops, meetings and other activities considered important for achieving project goal.
Interested organizations shall submit 4 hard copies of grant proposal including Certificate of registration with CAC to Women United for Economic Empowerment Office located at No. 70 Nwaniba Road, Uyo, Akwa Ibom State and soft copy via Email: email@example.com or firstname.lastname@example.org. Applications must be received not later than Thursday, 13th August, 2020 at 16.00 hrs. No late application will be accepted
Nigerian stock market opens with N119 billion loss
Nigerian equities market resumed trading on Monday with a loss of 0.91 per cent as a result of profit taking in some blue chips.
Speficially, the All-Share Index which opened the week at 25,182.67 lost 228.35 points or 0.91 per cent to close at 24,954.32.
Accordingly, Month-to-Date and Year-to-Date losses increased to -1.2 per cent and -7.0 per cent, respectively.
Also, the market capitalisation shed N119 billion or 0.91 per cent to close at N13.017 trillion against N13.136 trillion posted on Thursday.
The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are; MTN Nigeria Communications (MTNN), BUA Cement, Zenith Bank, Ecobank Transnational Incorporated and Guaranty Trust Bank.
Analysts at United Capital Plc said: “Looking ahead, we expect the market to remain volatile, as investors lock funds in cheap and fundamentally sound stocks, while taking profit on some stocks that gained last week.”
Consequently, market breadth closed negative with 16 stocks compared with 25 decliners.
Prestige Assurance led the losers’ chart in percentage terms, dropping by 10 per cent, to close at 63k, per share.
Neimeth International Pharmaceuticals followed with 9.73 per cent to close at N2.32, while AIICO Insurance shed 9.32 per cent to close at N1.07, per share.
ETI dropped 7.34 per cent to close at N5.05, while UACN Property Development dipped 6.73 per cent to close at 97k, per share.
Conversely, Fidson Healthcare and Red Star Express led the gainers’ chart in percentage terms, appreciating by 10 per cent each to close at N3.30 and N3.63 per share, respectively.
Cornerstone Insurance followed with a gain 9.80 per cent to close at 56k, per share.
Honeywell Flour Mills rose by 9.78 per cent to close at N1.01, while Unity Bank appreciated by 8.77 per cent to close at 62k, per share.
In the same vein, the total volume traded declined by 29.51 per cent with an exchange of 237.65 million shares, worth N1.61 billion, and traded in 4,808 deals.
This was in contrast with a total of 337.13 million shares valued at N3.41 billion achieved in 3,880 deals on Thursday.
Transactions in the shares of FBN Holdings topped the activity chart with 24.35 million shares worth N128.76 million.
Zenith Bank followed with 24.14 million shares valued at N392.36 million, while FCMB Group accounted for 19.47 million shares valued at N33.48 million.
Caverton Offshore traded 17.37 million shares worth N39.02 million, while United Bank for Africa transacted 14.64 million shares valued at N95.74 million.
Business9 months ago
NDDC BOARD: SENATOR PETER NWAOBOSHI AND OTHER SENATORS SCREEN NOMINEES
News2 months ago
Gunmen invade cemetery, exhume, move away with body of Rivers council boss who died of COVID-19
News6 months ago
How Two Secondary School Students Sold Their Colleagues To Ritualists In Ogun State