Access, UBA, GTB, Zenith And Others Bank Take More Than N100 Billion Out of the Customer’s Account for the Government

arewafacDecember 27, 2023

Access, UBA, GTB, Zenith And Others Bank Take More Than N100 Billion Out of the Customer’s Account for the Government

Access, UBA, GTB, Zenith And Others Bank: Financial institutions paid the federal government about N100 billion in value-added taxes, according to new data (VAT). Insurance companies and commercial banks made the payouts. Banks are required to debit customers’ accounts by the service charge and the 5% VAT imposed.

Banks and other financial institutions in Nigeria transferred N156.94 billion in value-added tax (VAT) to the federal government’s account.

The figure is a noteworthy 136.63% increase over the N78.77 billion in VAT that was remitted during the same time in 2022.

The value was recorded in the most recent sector-specific Value Added Tax report, which was distributed by the Federal Inland Revenue Service (FIRS) and released by the National Bureau of Statistics.

On taxable goods and services, the Value Added Tax Act Cap V1 LFN 2004 (as modified) levies a 7.5% tax known as VAT.

The only services provided by community banks, people banks, and mortgage institutions are exempt from VAT under Part 2 of the First Schedule to the Act.

As a result, all banks and other financial institutions—aside from those that are exempt—must charge value-added tax (VAT) on services they provide to their clients and submit an accounting to the Federal Inland Revenue Service.

How much money banks have sent to the government in 2023 so far

A Newspaper study revealed that N35.40 billion was taken out of consumers’ accounts and sent to the government during the first quarter of 2023, which ran from January to March. In Q1, 2022, this was N29.27 billion; this is an increase.

It rose from N22.342 billion in the same quarter of 2022 to N57.26 billion in the second quarter of 2023.

From N27.16 billion in Q3, 2022, to N64.27 billion in Q3, 2022, the growth persisted in Q3.

FG receives N2 trillion in taxes from companies like Netflix, Facebook, and Twitter.

In a previous article, Legit. ng revealed that international corporations operating in Nigeria, including Facebook, Google, Twitter, Netflix, and other internet firms, paid the Nigerian government approximately N1.98 trillion in taxes in 15 months.

Based on information from the NBS, the amount includes both Company Income Tax and Value Added Tax.