FG, States To Share Proceeds Of N50 Electronic Transfer Levy This Month

The Federal and State Governments will commence sharing of proceeds from the N50 new Electronic Money Transfer levy by the end of January.

This is according to the new Finance Act 2020 seen by THE WHISTLER.

The new Finance Act 2020, which was recently signed by President Muhammadu Buhari was accompanied with the 2021 Appropriation Act.

The Act which took effect January 1, was drafted to play a significant role in the implementation of the 2020 Budget.

The government also hopes to increase tax revenue through various sources.

Prior to the new Act, Nigerians were taxed to pay stamp duties on bank transfers.

But effective January 1, the Federal Government had replaced the policy with a new  transaction levy called “Electronic Money Transfer.”

The EMT has mandated a levy of N50 on transfer of money in a bank or any financial institution on any account on sums of N10,000 or more.

Revenue collected from the new EMT levy will be shared in manner that would make the Federal Government receive 15 per cent, while 85 per cent of the proceeds will go to the 36 States.

The country’s revenue sharing body, the Federation Account Allocation Committee, meet every month to allocate revenue between the FG, States and the local governments.