Nigerians have devised an ingenious means to escape the deduction of N50 Electronic Money Transfer Levy (EMTL) from every inflow of N10,000 and above received by them.
They took to the social media to explain how they hope to beat the policy which will be implemented by Fintech companies, including OPay, Moniepoint, Kuda, Palmpay and others from Monday.
The EMTL, which until now applied to only commercial banks has now been extended to all fintechs.
According to the Nigerians, instead of transferring the whole of N10,000 that is least sum eligible for the deduction, they will instead transfer N9,999.
Abubakar Muzammillu said he would transfer N9,999 and give the recipient the balance on cash.
“I will transfer N9,999 simple. The remaining N1, I will give the recipient in cash,’ he wrote on Facebook before adding the laughter emoji.
On his part, Folorunsho Ishmael toed Muzammillu’s line.
“Go and ask Kuda, I will just transfer N9,999,” he also wrote.
Over the weekend Fintechs in the country informed their customers of the commencement of the deduction.
According to the fintech companies, this deduction followed a directive by the Federal Inland Revenue Service (FIRS).
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This mandatory deduction brings to an end the era of free banking services that some of the fintechs provide, though the charges are remitted to the federal government.
The free banking services had made these fintech companies attractive to the members of the public, especially small and medium-scale business owners, students, and the downtrodden.
The regulations provide for a one-off levy of N50 on the recipient of any electronic receipts or transfers of N10,000 or above. For equivalent receipts or transfers carried out in other currencies, the levy will be charged at the exchange rates determined by the Central Bank of Nigeria (CBN).
In a short notification to its customers on Saturday, Moniepoint wrote:
“A N50 fee would be charged on inflows you receive of N10,000 and above from Monday, September 9, 2024. Your BRM is available to answer questions you might have.”
On its part, OPay, explained to its customers that the deduction is for EMTL as directed by the federal government.
“Please be informed that starting September 9th, 2024, a one-time fee of N50 will be applied to electronic transfers of N10,000 and above paid into your personal or business account in compliance with the Federal Inland Revenue Service (FIRS) regulations.
“It is important to note that OPay does not benefit from this charge in any way as it is directed entirely to the Federal Government,” the company wrote.
In December 2023, the FIRS directed deposit money banks to deduct and remit Electronic Money Transfer Levy (EMTL) on foreign currency (FCY) transactions going forward.
By: Babajide Okeowo
The post ‘We’ll transfer N9,999,” Nigerians devise means to escape FG’s electronic levy appeared first on Latest Nigeria News | Top Stories from Naomisophyblog.
