Traders, business owners now prefer cash to bank transfers –study

• APC chieftain advocates more sensitisation about new tax law

From Lateef Dada, Osogbo

Some traders and business owners now prefer cash payment from customers for goods and services rendered following implementation of the new tax law.

Some of the traders said the move was the interim measure to sustain their businesses and avoid unnecessary charges.

Customers said the development negated the financial inclusion and mobile banking policies of the Central Bank of Nigeria (CBN).

Mr. Fidelis Agbo, a trader at the Building Materials market in Mararaba market said that he was confused about the provisions of the new tax law, hence his preference for cash instead of transfers.

Agbo said that the news making the rounds in the market was that the government would collect tax for every money that drops in a person’s account.

”Since the government will not relent in collecting taxes, we have learnt to do our business with wisdom.

”I now collect cash from my customers for goods purchased. I usually direct my customers to a Point of Sale (PoS) person close to my shop to withdraw money.

“What I do for my big customers is that we split the PoS charges between us. My customers pay half and I pay half so that the burden will not be much on them. I intend to continue like this until I understand the tax thing better.”

Mr Khalid Abbas, also a trader at Nyanya market, said the tax law was still very complex in his eyes and that of other marketers.

Abbas, who also said he collected cash from his customers, disclosed that he was worried about the tax implications on electronic transactions.

He said he preferred cash for the fear of being taxed unfairly.

“Cash is straightforward, no complications, no need to involve banks or digital records.

“Before now, I heard that if you put the reason you are sending money to a person (narration), it will not be taxed but later, they said it was not true again.

“As a business owner, I am concerned about the new tax law but I am not sure how it will affect my business. To avoid any issues, I prefer to receive cash payments for goods sold just for me to manage my business given the current uncertainty around the tax law.”

Mrs Sarah Onifade, a buyer at Nyanya market, said she was asked to pay tax after the purchase of goods worth over N830,000.

Onifade said the seller received the alert of her transfer but asked her to pay tax of N50,000 on the money as he would be charged by both his bank and the government.

“I was very surprised to hear this because I never understood the tax law like this.

“I ended up paying an additional N20,000 to him after so much dragging back and forth. This is frustrating and discouraging,” she said.

Mrs Sarah Akator, a business owner, called on various agencies saddled with the responsibility of sensitising the public to do so urgently with a view to making people well informed about the new tax laws.

Akator called on the National Orientation Agency (NOA) and the tax committee to commence awareness and sensitisation programmes, especially in markets and communities to help citizens better understand the law.

She suggested that translating the law into different local languages would aid easy assimilation and understanding.

Meanwhile, a chieftain of the All Progressives Congress (APC) in Osun State, Olatunbosun Oyintiloye, has advocated urgent need for widespread sensitization about the new tax regulations.

Oyintiloye, who expressed concern that many Nigerians remain unaware of the new tax reform laws and often misinterpret them, noted that a lack of understanding has led to misconceptions, misrepresentation, and suspicion of the government’s intentions.

The former member of Osun House of Assembly, thereby called for extensive and sustained enlightenment initiatives regarding the new law, saying “Widespread misinformation about the tax law has left many Nigerians, including the educated, confused about what, when, and how their earnings will be taxed.”

He also noted  that there are discrepancies between the version of the bill passed by the National Assembly and the published versions in the official gazette, which have further fueled confusion.

While acknowledging the government’s positive intentions towards low earners in the country, he pointed out that misinformation surrounding the implementation of the tax law is overshadowing its true objectives. “Many Nigerians are still ignorant of the new tax law. Social media is filled with varying explanations, leading to widespread confusion.

“The misinformation is spreading faster than the true intentions of the law and its benefits. Up until now, many Nigerians, both literate and illiterate, do not know what to believe about the tax law.”

Oyintiloye attributed the confusion to the slow pace of public sensitization and minimal engagement before the implementation date of the new tax law. He urged relevant government agencies responsible for raising public awareness about government policies to take action.

“I implore the National Orientation Agency (NOA), the Federal Ministry of Information, and other pertinent agencies to enhance their public awareness campaigns, especially regarding the tax reform law. This is crucial to help people understand the government’s good intentions, particularly towards low earners, and to curb the spread of misinformation,” he stated.

He expressed joy that various economic reforms introduced by President Bola Tinubu have begun to yield positive results, stressing that these gains should be effectively communicated to the public by the relevant agencies.