How Financial Act affects your banking services

How Financial Act affects your banking services

By Anthony Okafor

The Finance Bill, now called the Finance Act 2020, which was recently signed into law by President Muhammad Buhari, has continued to generate diverse responses from Nigeria.

While few Nigerians have laud the move, other remain at the other end of line.

iBrandTV gathered that the legislation is broad, covering many aspects of taxation and is specifically designed to stimulate small and medium business growth.

However, the key changes made and how it may affect you in relation to banking services, can be viewed from different perspectives. 

For instance, Value Added Tax, VAT, which was formally at five percent will increase by 2.5 percent to 7.5 percent due to the enactment of the act.

Also, Stamp Duty Charge of N50 applied on electronic funds transfers or deposits of N1,000 and above, will not continue, rather, N50 will be applied on electronic funds transfers or deposits of N10,000 and above.

While, Tax Identification Number, TIN, which was not a compulsory requirement for bank operation will now be required as a pre-condition to open or operate a bank account for business purpose.

These new requirements will take effect from February 1, 2020.

Meanwhile, the management of Access Bank has reinstated its commitment to delivering excellent customer service, complying with and and keeping you up-to-date with regulatory changes as they arise.




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