No new levies on bank transfers, businesses gain VAT credits — Presidency
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele
Abdullateef Fowewe
In a move to dispel myths and ensure seamless rollout, financial institutions gathered for a pivotal engagement session on implementing Nigeria’s new tax acts, affirming that the reforms introduce no fresh taxes on electronic transfers or money in bank accounts.
Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, in a post on X on Monday, highlighted the misconceptions clarifying, “Did you know that the tax reforms did not introduce any new tax or levy on electronic transfers or money in your bank accounts? In fact, under the new laws, many businesses are now eligible to claim input VAT credits on bank charges.”
The multi-stakeholder forum, hosted by the Nigeria Revenue Service (NRS), Joint Revenue Board, Central Bank of Nigeria (CBN), and the Presidential Fiscal Policy & Tax Reforms Committee, drew Risk and Compliance Officers, Legal Advisers, Chief Financial Officers, and Regulatory Affairs Executives from fintechs, commercial banks, microfinance banks, pension funds, asset managers, investment firms, and more.
Discussions highlighted practical measures to prevent errors, enforce compliance, and simplify processes for businesses and individuals.
Central to the talks was preventing wrongful charges on customers, ensuring financial institutions apply charges accurately and transparently.
Participants also reinforced the mandatory Tax Identification Number (TIN) requirement for all business or income-generating bank accounts, a rule in place since January 13, 2020, to curb tax evasion and promote accountability.
Financial institutions received guidance on empowering customers to file tax returns smoothly and claim eligible deductions, positioning banks as key allies in voluntary compliance.
A major highlight was the scrapping of Tax Clearance Certificates (TCCs) for foreign exchange transactions, a move designed to enhance the ease of doing business by eliminating bureaucratic hurdles.
The forum also clarified due process for tax authorities’ substitution powers—provisions carried over from previous laws—to ensure fair application without abuse.
Strengthening taxpayer safeguards emerged as another pillar, with expanded roles for the Office of the Tax Ombud to mediate disputes and protect rights.
Oyedele emphasised the reforms’ broader goals, “The tax reforms are designed to support formalisation, tax harmonisation, and financial inclusion, while improving trust and efficiency across the financial system.”
