Recall that some months ago, the Debt Management Office (DMO) released the country’s debt report.

In the report as reported on Unmask NG,  Nigeria’s total debt stock, which comprises foreign and local arrears, as at June 2020 stood at N31.01 trillion, which represents 8.31% increase when compared to her N28.63 trillion debt profile as at March 2020 (three months prior).

Out of the N31.01 trillion debt profile, external debt stood at N11.36 trillion, representing 36.65% of the total debt stock. On the other hand, domestic debt at N19.65 trillion, representing 63.35% of the total debt.

The DMO report also disclosed that N1.21 trillion was spent to service the loans during the period under review. While domestic debt servicing gulped N921.9 billion, the government spent N288.6 billion to service its foreign debts.

Raising alarm on the debt crisis, the Executive Chairman of FIRS, Muhammadu Nami analyzed how Nigeria’s impending recession will affect the country’s revenue.

“Oil prices have plummeted (from $97.98 in 2012 to below $50 in 2020. Collection has indeed gone up, but Nigeria’s VAT gap remained at a pitiable 70 percent, compared with South Africa at 12 percent, Morocco at 28 percent, and Zimbabwe at 38 percent.

“If the country’s revenue doesn’t improve, Nigeria will struggle to service its debt, and it will lead to debt crisis. The debt crisis will worsen insecurity and result in political unrest in the country.

 “A Debt Management Office (DMO) report indicates that about N1.21 trillion was used to service debt from January to June 2020. Over N3 trillion is proposed for debt servicing in 2021. The report further projects that Nigeria’s debt stock will grow significantly by end of 2020. God forbid that Nigeria should default in debt repayment obligations.

“Nigeria’s debt to revenue ratio is worsening it is estimated at 538 percent at the end of the fourth quarter, that is 190 percent increase from 2019 figure (348 percent),” his analysis pointed out.

What this means

In spite of concerns from economic experts, industry players, stakeholders, and international bodies, President Muhammadu Buhari-led government has channeled its focus on borrowings and adding to Nigeria’s alarming debt stock.

It is however apparent that loans seem to be the only way the incumbent administration can secure funds to keep the economy running.

But the reality is, should the government continue on this trend, the increasing debt would not stop to disrupt large investments on infrastructures, which are meant to stimulate productivity and improve the standard of living of the people.

The post FIRS Warns Buhari Against Plunging Nigeria Into Debt Crisis appeared first on Business News in Nigeria.

According to a circular by the tax-collecting agency, the stamp duty will be charged from Nigerians through banks anytime there’s a notification of transaction regardless of the electronic medium.

While the stamp duty will be deducted for transactions of N10,000 and above, FIRS disclosed that the stamp duty will affect individual-to-individual, corporate-to-corporate transactions, as well as transactions between corporate and individual(s).

‘All electronic media included’

In the circular seen by Unmask NG, the FIRS disclosed that the N50 stamp duty will be deducted once a transaction occurs on SMS and messages on any electronic platform such as emails and Whatsapp messages, POS receipts, and ATM print-outs.

The circular signed by Muhammad Nami, FIRS’ boss, read; “Any electronic receipt for, or electronic transfer of, money deposited with any bank or with any banker in any type of account of an amount from N10,000 upwards shall attract a singular or one-off duty of the sum of N50.

“Stamp duty upon receipt (written, printed, or in electronic form) for transactions between corporate bodies or between a corporate body and an individual, group or body of individuals, which amounts to N10,000 and above, shall be denoted by payment of N50 per receipt to the service.”

Services the N50 stamp duty will be charged for

Not every electronic transaction the FIRS will charge for on receipt. As stated in the circular, the tax-collecting agency made known that it will charge on fixed duty instruments — This includes Power of Attorney, Certificate of Attorney, Proxy forms, Appointment of receivers, Memorandum of Understanding, Joint Venture Agreements, Guarantors form, Ordinary agreements, and Receipts.

Other services to be charged for are Ad-valorem instruments such as -Tenancy or lease agreements, legal mortgage or debentures, Sales agreements, and Deed of assignments.

Please note that the charge will not be applied if there’s no form of electronic acknowledgment of the transaction.

The post N50 Stamp Duty: These Are Services FIRS Will Be Charging For appeared first on Business News in Nigeria.