The Chairman of the Chartered Institute of Taxation of Nigeria (CITN), Abuja District, Ben Enamudu, has dismissed widespread claims that bank balances are taxed under Nigeria’s new tax regime, clarifying that only certain electronic transfers attract a N50 stamp duty.
Speaking during an interview with ARISE News on Tuesday evening, Enamudu said misinformation surrounding the reforms, particularly regarding bank transfers and income thresholds, has created unnecessary anxiety among Nigerians.
According to him, Nigerian tax laws do not impose any tax on money kept in bank accounts.
“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,” he said.
Enamudu explained that the N50 charge applicable to some electronic transfers is a stamp duty, not a tax on deposits or account balances. He noted that the duty applies when money is transferred from one account to another across financial institutions.
“When you make transfers from your account to someone else, there is a N50 stamp duty that applies. However, if you maintain multiple accounts within the same bank, you are not expected to pay the stamp duty,” he said.
He added that under the new tax reform, only the sender bears the cost of the stamp duty, unlike previously when both sender and receiver shared the burden.
The CITN chairman also outlined key exemptions, stating that salary payments, salary accounts, and transfers below N10,000 are not subject to stamp duty.
“Once it hits N10,000, you pay the N50 charge,” he said, adding that transfers between personal accounts in different banks still attract the duty.
On value-added tax (VAT), Enamudu reaffirmed that essential goods and services such as basic food items, medical services, pharmaceuticals, and education remain VAT-exempt.
He also highlighted a housing-related relief under the reforms, noting that tenants are entitled to a 20 per cent rent relief, capped at N500,000 annually.
“If your rent is N3 million annually, 20 per cent is N600,000, but the relief is capped at N500,000. If your rent is N1 million, then your relief is N200,000,” he explained.
On tax compliance, Enamudu said Nigeria operates a self-assessment system, requiring individuals to voluntarily declare their income. While employers remit PAYE for salaried workers, individuals with additional income sources must file returns themselves.
“Your salary income is just one line. If you earn rent or run a business, all incomes must be aggregated and declared,” he said.
He added that states would apply presumptive taxation for informal sector operators such as market women, using structures that consider simplicity and cost-effectiveness.
Addressing concerns about the overall impact of the reforms, Enamudu described the new tax law as pro-poor, clarifying that the frequently mentioned N800,000 threshold refers to taxable income after statutory deductions not total earnings.
“The tax act, as passed, is heavily pro-poor. That is actually the reality of the act,” he said
