The Nigeria Revenue Service (NRS) has denied claims that the newly enacted Nigeria Tax Act introduced Automated Teller Machine (ATM) charges or imposed fresh taxes on banking services, describing the reports as a misreading of the law.
The clarification follows growing public concern and social media speculation suggesting that ATM withdrawals and electronic banking transactions had been subjected to new taxes under the reform law.
In a statement issued on Tuesday, the NRS said the Act did not create any new tax regime targeting bank customers, stressing that existing charges on ATM usage and other banking services are not taxes imposed by the government.“The Nigeria Tax Act does not introduce any tax on ATM withdrawals or banking services,” the Service said.
“What some members of the public have referred to as ‘ATM tax’ are service charges determined by financial institutions in line with existing regulatory guidelines, not taxes created by the new law.”
The NRS explained that the confusion likely arose from sections of the Act dealing with tax harmonisation and the classification of taxable services, which, according to the agency, have been taken out of context.“No provision of the Act authorises the NRS or any other government agency to collect taxes from ATM transactions or routine banking services,” it added. “Customers should not confuse bank charges with statutory taxes.”
An analysis of the Nigeria Tax Act shows that its primary focus is on streamlining tax administration, reducing duplication across tax authorities, and improving compliance rather than expanding the tax net to include retail banking transactions.
The Service further cautioned against the spread of unverified interpretations of the law, noting that misinformation could undermine public confidence in the financial system.“We urge Nigerians to seek clarification from official sources before drawing conclusions on the implications of the Act,” the NRS said.
“The objective of the reform is efficiency and fairness, not the imposition of additional burdens on citizens.”
The clarification comes at a time when fiscal reforms remain under intense public scrutiny, particularly as households and businesses grapple with rising costs and broader economic adjustments.
