Drawback for financial inclusion drive as FG begins N50 PoS charge
Mild confusion is gradually engulfing users of Point of Sale (PoS) device to pay for goods especially at filling stations across the federation.
This stemmed from the resumption of N50 tax introduced by the Federal Government to raise revenue.
The indication is that Nigerians will have to part N50 naira in addition to service fee and transaction alerts all to be paid by customers using PoS device for transaction.
The implication is that the Central Bank of Nigeria (CBN) and the Nigeria Interbank Settlement System (NIBSS) are working for the application of remittance processes to ensure the seamless collection of stamp duty charges for PoS.
Checks at filling stations, groceries and super markets show serious compliance even at the anger of customers who are not well informed on the deductions ahead of implementation after all.
Accordingly, several petrol stations and even super markets have pasted bold notices on the development to avoid clashes with workers when customers realize the deduction after service delivery.
Business Hilights recalls that the extra charge on customer’s transaction followed a CBN’s directive to banks to charge N50 Stamp Duty on individual transactions, rather than merchants’ accounts.
The directive on the Unbundling of Merchant Settlement Amounts was contained in the CBN circular to banks, processors and switches, titled: “Review of Process for Merchants Collections on Electronic Transactions”.
The policy stipulates Stamp Duties Payment on individual transactions that occur on PoS, rather than previous plans where charges occurred on aggregate transactions.
The circular signed by CBN Director, Payments System Management Department, Sam Okojere, authorised banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by regulators.
Merchant Service Charge was also reviewed downward from 0.75 per cent (capped at N1, 200) to 0.50 per cent (capped at N1, 000).
In its explanation on the development, NIBSS in its report titled: “Returns on Stamp Duty Collection for Merchant Transactions”, said the payment agency said the new stamp duty payment plan is in line with the provision of the Stamp Duties Act and Federal Government Financial Regulation 2009.
