By Adedapo Adesanya

The Chartered Institute of Taxation of Nigeria (CITN) has dismissed claims that bank balances are taxable under Nigeria’s new tax regime, saying only certain electronic transfers attract a N50 stamp duty and that the reforms are designed to shield low-income earners.

The Chairman of the taxation body for Abuja District, Mr Ben Enamudu, made this known while speaking in an interview with Arise News on Tuesday as part of efforts to educate and correct misconceptions around the new regulations.

Mr Enamudu said misinformation about the reforms, particularly around bank transfers and income thresholds, has caused panic among Nigerians.

“The narrative out there, which is the wrong narrative, is that the money in your bank account will be taxed. There is no provision for that in our tax laws. Nobody taxes the money in your bank account,” he said on the programme, explaining that the charge applicable to electronic transfers is a stamp duty, not a tax on deposits or account balances.

“When you make transfers from your account to someone else, there is a N50 stamp duty that applies. However, if you maintain multiple accounts within the same bank, you are not expected to pay the stamp duty,” Mr Enamudu said, noting that the reform also changes who bears the cost of the duty.

“Before now, both the sender and the receiver bore the burden of the stamp duty. But with the new tax reform, only the sender pays,” he said.

Mr Enamudu said several transactions are exempt from the charge.

“Salary accounts and payment of salaries are exempted from stamp duty. Transfers below N10,000 are also exempted. Once it hits N10,000, you pay the N50 charge,” he said.

He added that transfers between personal accounts held in different banks still attract stamp duty.

“Once it crosses one financial institution to another, the stamp duty is triggered, even if it is your own account,” he said.

Mr Enamudu also noted that essential goods and services remain exempt from Value-Added Tax (VAT).

“You don’t pay VAT on basic food items, medicals, pharmaceuticals, education and other essentials,” he said.

Speaking on another point: housing, he highlighted a rent relief introduced under the reforms.

“If you pay rent as a tenant, you are allowed a relief of 20 per cent of the rent paid, subject to a maximum of N500,000,” he said

“If your rent is N3 million annually, 20 per cent is N600,000, but the relief is capped at N500,000. If your rent is N1 million, then your relief is ₦200,000,” he said.

Mr Enamudu also said the country operates a self-assessment system for tax clearance.

“The law envisages that you will come forward voluntarily and declare your income,” he said.

While employers remit PAYE for workers, he said individuals with other income streams must file returns themselves.

“Your salary income is just one line. If you earn rent or run a business, all incomes must be aggregated and declared,” he said.

He added that states would adopt presumptive taxation for informal operators such as market women.

“Market women fall under the informal sector. States will determine structures and modalities, considering the principle of economy,” he said.

Addressing broader concerns about the impact of the reforms, Mr Enamudu described the new tax law as protective of vulnerable earners.

“The tax act as passed is heavily pro-poor. That is actually the reality of the act,” he said.

He clarified that the often-cited N800,000 figure refers to taxable income, not total earnings.

“The narrative out there also needs correction. It is not that if you earn N800,000, you don’t pay tax. The law says if your taxable income is N800,000 and below,” he clarified.

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange extended its stay in the green territory on Tuesday, January 6 as it further expanded by 1.08 per cent at the close of business.

During the session, the NASD Unlisted Security Index (NSI) closed higher by 38.63 points to 3,613.96 points from the 3,575.33 points it finished a day earlier, and the market capitalisation added N23.11 billion to close at N2.162 trillion compared with the N2.139 trillion it finished on Monday.

Yesterday, investors completed their transactions in 56 deals, 273.3 per cent higher than the 15 deals carried out on Monday.

In the same vein, the volume of securities transacted by investors increased by 594.9 per cent to 1.4 million units from the previous day’s 193,973 units and the value of securities surged by 525.0 per cent to N28.0 million from Monday’s N4.5 billion.

On a year-to-date basis, Central Securities Clearing System (CSCS) Plc ended the day as the most traded stock by value with 564,080 units sold for N20.8 million, trailed by Okitipupa Plc with the sale of 49,000 units valued at N10.9 million, and Geo-Fluids Plc with a turnover of 1.6 million units worth N10.7 million.

But, Industrial and General Insurance (IGI) Plc finished the session as the busiest stock on a year-to-date basis with 2.9 million units traded for N1.9 million, followed by Geo-Fluids Plc with 1.6 million units valued at N10.7 million, and CSCS Plc with 564,080 units transacted for N20.8 million.

Business Post reports that there were two price gainers on Tuesday and one price loser led by Geo-Fluids Plc, gave up 16 Kobo to close at N6.78 per unit versus N6.94 per unit.

However, FrieslandCampina Wamco Nigeria Plc added N5.17 to close at N56.87 per share compared with the previous day’s rate of N51.70 per share, and CSCS Plc appreciated by N2.74 to N38.74 per unit from N36.00 per unit.

By Dipo Olowookere

The second trading session of the week on the Nigerian Exchange (NGX) Limited ended on a positive note with a further 0.46 per cent surge on Tuesday.

The strong appetite for Nigerian stocks helped the market capitalisation of Customs Street to grow by N468 billion to N102.275 trillion from N101.807 trillion and the All-Share Index (ASI) soared by 732.86 points to 159,951.08 points from the previous day’s 159,218.22 points.

Yesterday, 65 equities ended on the gainers’ chart and 21 equities finished on the losers’ table, indicating a positive market breadth index and bullish investor sentiment.

Meyer expanded by 10.00 per cent to N14.30, Jaiz Bank appreciated by 10.00 per cent to N5.28, ABC Transport increased by 9.98 per cent to N4.96, and Austin Laz gained 9.94 per cent to close at N5.64.

Conversely, Aluminium Extrusion lost 9.96 per cent to settle at N21.70, Learn Africa decreased by 9.16 per cent to N5.95, Oando shrank by 7.69 per cent to N40.80, UBA weakened by 6.22 per cent to N43.00, and Access Holdings crashed by 6.00 per cent to N23.50.

Business Post reports that Linkage Assurance led the activity chart after it transacted 51.6 million shares worth N93.1 million, Sterling Holdings traded 49.2 million stocks valued at N368.5 million, Access Holdings sold 48.7 million equities for N1.2 billion, Mutual Benefits exchanged 34.7 million shares valued at N142.0 million, and Regency Alliance transacted 26.4 million stocks worth N33.6 million.

At the close of trades, market participants bought and sold 759.0 million equities for N19.9 billion in 54,212 deals during the session versus the 695.7 million equities worth N18.6 billion in 56,632 deals on Monday.

This showed that the volume of transactions and the value of trades went up by 9.10 per cent, and 6.99 per cent, respectively, while the number of deals went down by 4.27 per cent.