Stamp duty on bank transactions not a tax, OGIRS clarifies at tax reform lecture

The Ogun State Internal Revenue Service (OGIRS) has clarified that stamp duty deductions on bank transactions do not amount to taxation, describing them as statutory charges meant to support public spending on key sectors of the economy.

The Executive Chairman of OGIRS, Mr Olugbenga Olaleye, made the clarification as part of the agency’s public enlightenment drive, stressing that stamp duty proceeds are paid into government coffers to fund infrastructure, education, healthcare, security and other social services.

Speaking on a Yoruba current affairs programme, Ayekooto, Olaleye explained that misconceptions around stamp duty and taxation were fueling unnecessary public anxiety. He urged citizens to disregard rumours capable of undermining confidence in the tax system.

Represented on the programme by the Director of Field Operations, Mrs Oluwaseun Olajube, the OGIRS boss said the ongoing tax reforms were designed to protect low-income earners and ensure fairness in tax administration.

He noted that it is income, not the volume of bank transactions or the number of accounts operated by an individual, that is subject to tax.

“If you like operate ten bank accounts, your BVN and NIN will reveal your identity. It is your income that is taxable, not the amount of money spread across accounts,” Olaleye said.

He further assured taxpayers that loans, transfers, gifts and savings are not taxable under the new tax regime, while appealing for patience and honesty in income declaration.

Olaleye also reiterated that creating sufficient disposable income for citizens would boost productivity and stimulate economic growth, urging residents to comply by paying only appropriate and lawful taxes.

The OGIRS chairman reiterated these assurances at a public lecture on tax reforms held at Olabisi Onabanjo University (OOU), Ago-Iwoye, where the agency featured prominently in discussions on the new fiscal framework.

Speaking at the maiden lecture titled ‘Nigerian Tax Reforms Acts 2025: Focus on Personal Income Taxation’, Olaleye said the reforms represented the most ambitious overhaul of Nigeria’s tax system in decades.

Represented by the Coordinating Director of OGIRS, Mr Taiwo Ogundimu, he disclosed that President Bola Ahmed Tinubu signed four major tax reform laws in June 2025—the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Act and the Joint Revenue Board Act.

According to him, the reforms are aimed at simplifying tax laws, expanding the tax base, modernising compliance and promoting transparency and equity, with specific reliefs for low- and middle-income earners.

“The Tax Reform Acts 2025 mark a turning point for Nigeria’s tax policy, with a clearer and more progressive personal income tax system,” he said.

Earlier, the Vice-Chancellor of OOU, Prof. Ayodeji Agboola, commended the initiative, noting that the university was now fully digitalised and encouraging participants to engage actively in discussions.

The Dean of the Faculty of Management Sciences, Prof. Muse Solanke, described the lecture as timely, saying it would help dispel fears and misconceptions surrounding the new tax laws.

Delivering the keynote lecture, the Managing Director and Chief Executive Officer of Integrated Consultancy Management and Accountancy (ICMA) Professional Services, Alhaji Lukman Buari, said the reforms were necessitated by a previously broken tax system.

He emphasised that not all income is taxable, listing loans, transfers and reimbursements among exemptions, while urging taxpayers to know their rights, keep simple records and fulfil their civic responsibilities.