According to Quartz Africa, the government may appoint banks as agents to deduct 5% VAT on all local online purchases with a bank card. The policy could be in place by early 2019. If launched, the tax adds to a growing number of existing charges Nigerian bank card holders already face, including a card maintenance fee.
The policy proposal comes as more online businesses begin to scale back on cash payment on delivery options, encouraging more customers to embrace online payments. Ecommerce companies like Jumia and Konga have also invested in in-house payment solutions to ease online payments for shopping on their platforms.
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