The Chartered Institute of Taxation of Nigeria (CITN) has dismissed reports that bank balances are taxed under Nigeria’s new tax regime. The institute explained that only certain electronic transfers attract a ₦50 stamp duty.
CITN Chairman Ben Enamudu, speaking in an interview with Arise TV on Tuesday, said the reforms are designed to protect low-income earners.
He noted that misinformation about bank transfers and income thresholds has caused unnecessary concern among Nigerians.
“The narrative out there, which is the wrong narrative, is that the money in your bank account will be taxed. There is no provision for that in our tax laws. Nobody taxes the money in your bank account,” Enamudu said.
Enamudu explained that the ₦50 stamp duty applies only when transfers are made from one account to another.
“When you make transfers from your account to someone else, there is a ₦50 stamp duty that applies. However, if you maintain multiple accounts within the same bank, you are not expected to pay the stamp duty,” he clarified.
He added that under the new reform, only the sender pays the duty. “Before now, both the sender and the receiver bore the burden of the stamp duty. But with the new tax reform, only the sender pays,” he said.
Salary accounts and salary payments are exempted, while transfers below ₦10,000 also do not attract the charge. “Once it hits ₦10,000, you pay the ₦50 charge,” Enamudu explained.
Transfers Across Banks and VAT Exemptions
The CITN Chairman further disclosed that transfers between personal accounts held in different banks still attract stamp duty.
“Once it crosses one financial institution to another, the stamp duty is triggered, even if it is your own account,” he said.
He also reassured Nigerians that essential goods and services remain exempt from value-added tax (VAT).
“You don’t pay VAT on basic food items, medicals, pharmaceuticals, education and other essentials,” Enamudu stated.
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