NRS Chairman.webp
The Digest:

The Nigeria Revenue Service has moved to clarify a critical point of tax policy: the 7.5% Value Added Tax applies only to bank service charges, not to the actual money customers transfer or deposit. In a statement issued Thursday, the NRS firmly dispelled what it called widespread misinformation, seeking to reassure Nigerians that no new tax burden has been introduced under the current fiscal reforms.

Key Points:
  • The NRS clarified that VAT is not levied on the amount of money transferred or withdrawn by customers.
  • The tax applies only to fees, commissions, and service charges imposed by banks.
  • The agency stated that VAT on banking services is not new and existed under previous laws.
  • Interest earned on savings and deposits remains exempt from VAT.
  • Basic food items, essential goods, medical services, and tuition are also VAT-exempt.
  • The focus of the new tax framework is improved compliance, not new VAT rules.
  • The public is urged to disregard misleading reports and rely on official communications.
In a climate of economic anxiety, the clarification seeks to draw a line between fact and fear, a reminder that transparency is the first defence against uncertainty in systems built on public trust.

Sources: The Nation Newspaper, Nairametrics