The Federal Government is projecting to generate N209.77billion as revenue from electronic money transfer levy in 2022, ac- cording to the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF&FSP) recently released by the Budget Office of the Federation.
If this target is met, it will, however, be N252.23billion less than what the World Bank estimated that Nigeria would likely make from the electronic money transfer levy this year. In its latest Nigeria Development Update, titled, “Resilience through Re- forms,” released on June 15, the World Bank predicted that the country would earn about N462 billion from the Electronic Money Transfer (EMT) levy in 2021.
The EMT levy is a N50 charge on electronic receipts or electronic money transfers deposited in any Deposit Money Bank (DMB) or financial institution in the sum of N10,000 or more.
The levy, which applies to all account types, is part of the Finance Act 2020 that came into effect in January 2021 and is widely seen as an amendment of the Stamp Duty Act , under which, N50 used to be levied on electronic payments above N1,000.
According to the Finance Act 2020, revenue earned from the N50 levy on electronic money transfer of up to N10,000 or more should be shared based on derivation 15 per cent to the Federal Government and Federal Capital Territory (FCT) and 85 per cent to the states.
New Telegraph’s analysis of the MTEF & FSP shows that the Federal Government is also projecting that the country would earn N2.26 trillion from Value Added Tax (VAT) in 2022.
Specifically, the documents stated: “Based on the key parameters driving the fiscal framework, the net amounts accruable to the Main Pool and VAT Pool Federation Account are projected at N10.52 trillion and N2.26 trillion respectively in 2022. The share of oil revenue is about 51.1 per cent of total Federation Account receipts.
“Other components of the Federation Account revenues include revenues from Corporate Tax N1.87 trillion, Customs Revenue N1.72 trillion, Special Levies N148.40 billion, Solid Minerals N6.01 billion and Electronic Money Transfer Levy of N209.77 billion.
“The share of the Federal Government from the Main Federation Account Pool is N5.51 trillion while the states and Local governments are projected to get N2.80 trillion and N2.16 billion, respectively in 2022.
From the VAT Pool, the Federal Government is projected to receive N339.31 billion, the states N1.13 trillion, and the Local governments N791.73 billion.”
Further analysis of the MTEF&FSP indicates that the government expects that aggregate revenue that would be available to it to fund the 2022 Budget would be about N7.26 trillion (9% or N626.37 billion more than the 2021 Budget).
Of this, N3.16 trillion or 49.1 per cent is projected to come from oil related sources while the balance is to be earned from non-oil sources.
With the retained revenues of Government-Owned Enterprises (GOEs), excluding the NNPC and CBN, the aggregate Federal Government revenue for 2022 is, however, projected at N8.36 trillion.