The Federal Government, through the Finance Act 2020, has introduced Electronic Money Transfer Levy to replace stamp duty.
The replacement came after the Court of Appeal outlawed stamp duty on electronic bank transfer.
The Finance Act 2020, stipulates payment of N50 levy on every electronic money transfer deposited in any bank or financial institution on any account on the sum of N10,000 or more.
Like Value-Added Tax (VAT), states will benefit more from the accruing revenue at a ratio of 85 per cent, while the Federal Government and Abuja will share the remaining 15 per cent.
The Act also reduces import duty on tractors from 35 to five per cent; mass transit vehicles for transport of more than 10 persons and trucks from 35 per cent to 10 per cent; and reduction of import levy on cars from 30 per cent to five per cent.
According to Nigerian Tribune, the development came as a result to redirect traffic of these vehicles from other ports in West Africa to Nigeria.
The new law removed some tax burden on individual and small businesses while redefining others.
For instance, workers earning N30,000 minimum wage or less have been exempted from personal income tax, while commercial airline tickets will no longer attract VAT.
The Finance Act 2020 was signed by President Muhammadu Buhari and has a commencement date of January 1, 2021.