Over a year ago, the Central Bank of Nigeria issued a mandate for vendors to remit a statutory charge of N50 on POS transactions. This charge was marked for tax and stamp duty provided the transaction exceeded N1,000. 

Since the mandate, most vendors have silently programmed the tax onto their POS systems, automatically charging their customers.This is done because of the general belief that the usage of POS machines are to the sole benefit of the customer, therefore they were to bear the tax which was too high for they the vendors to absorb.

Various supermarket owners and petrol station attendents futher justified the passing off of the tax, asserting they could not bear the cost of the taxes as their profit margins were already narrow. 

Though it is estimated that the current total of tax collected could be in the billions, it is believed that the continuation of the collection of this tax could have adverse effects in the Central Bank of Nigeria's cashless policy plans.

Nigerian consumers aware of this tax, have stated they would rather pay in cash even at the inconvenience of first withdrawing from an ATM as long as they circumvent means N50 POS tax. 

Vendors report there has been a general increase in cash payments since the introduction of this tax with some customers stating they would be willing to pay via POS if their consent to pay the tax was first sought. 

It has been rumoured that though this tax may not be removed, the N1,000 on POS transactions limit may be increased.

Do you think this tax should be rubbished?