Following the Electronic Money Transfer Levy of N50, charged by the Federal Inland Revenue Service (FIRS) on every electronic inflow of N10,000 and above, operators of Point-of-Sale (POS) terminals have raised their charges by 50%.
It was noted that POS operators have increased charges from N100 for amounts withdrawn between N1,000 and N5,000 to N150.
The increase in POS charges came shortly after several fintech platforms notified their customers about the new development on Sunday, explaining the reasons for the collection of the N50 Electronic Money Transfer Levy.
One fintech, Moniepoint, stated in an email, “Please be informed that in compliance with the Federal Government Stamp Duty Act, you will be charged an Electronic Money Transfer Levy of N50 by the Federal Inland Revenue Service on any electronic inflow of N10,000 and above.”
“FIRS charges you N50 for inflow received in your Moniepoint personal banking account. Moniepoint does not benefit from this but receives and remits this sum to FIRS,” the mail added.
Similarly, another fintech company, PalmPay reaches out to its customers stating “Dear Valued Customer, In accordance with the Electronic Money Transfer Levy regulation of 2022, a N50 levy will be charged on transfers of N10,000 or more paid into your PalmPay account from November 30th, 2024 as mandated by the Federal Inland Revenue.”
Palmpay added “Please note that PalmPay does not benefit from this levy, it is remitted directly to the federal government. PalmPay continues to offer unlimited free transfers to any bank account. We are dedicated to providing affordable and accessible financial services to our valued customers.”
OPay also informed their customers saying, “Dear customer, in line with the FIRS, the EMTL applies starting December 1st, 2024.”
Although this aligns with the tax reform initiative of President Bola Ahmed Tinubu, to create an efficient tax system that will spur the country’s development.
Yet, Investors King gathered that this recent development could potentially lead to the extinction of numerous POS businesses due to a decline in customer turnover.
