Banks have increased excise duty on money transfer charges to 20 percent in line with the Court of Appeal's nullification of the Finance Act 2023, highlighting the compliance chaos as the government continues to ignore orders calling for lower taxes on fuel and salaries as was ordered by the same court.
The lenders have issued notices to their customers, informing them of the rise in the excise duty from 15 percent and said that they will backdate the implementation to the effective date of August 1. They will recover the incremental five percent by debiting customers’ accounts for transactions that have been charged at 15 percent since the month started.
