The Federal Inland Revenue Service (FIRS) has directed banks to remit electronic money transfer levy (EMTL) on foreign currency transactions to the Federal Government.
“Financial institutions are to deduct a levy of N50 on all inflows (both cash and electronic deposits) of N10,000 and above and equivalent in foreign currencies, and remit the same to the Federal Government,” a commercial bank said in a message to its customers.
The bank said the directive implies that when a customer receives foreign currency inflows or cash deposits equivalent to N10,000 and above into his or her account, a levy of N50 will be charged from the receiver’s account.
The bank added that in compliance with the notice from FIRS, EMTL of N50 would be deducted on previous foreign currency inflow (FCY) transactions that were executed between January 1, 2021 and December 31, 2023, as stated in the new directive.
Meanwhile, FIRS recently revealed plans to significantly increase its tax revenue collection by 57% to N19.4 trillion in the year 2024.
Bloomberg quoted a document indicating that the FIRS hopes to increase its oil revenues to N9.96 trillion with non-oil tax revenue at N9.45 trillion.
“The Federal Inland Revenue Service (FIRS) also plans to carry out internal reallocation from oil to non-oil, given that the budget oil revenue for 2024 was increased by 214% compared to 2023 actual, while non-oil was increased by only 3%,” Bloomberg stated.
