Some traders, business owners now prefer cash payment from customers for goods and services rendered.
This followed implementation of the new tax law, a News Agency of Nigeria (NAN) study reveals.
Some of the traders who spoke to NAN in Abuja on Sunday, 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, ” he said.
Mr Khalid Abbas, also a trader at Nyanya market, said the tax law was still very complex in his eyes and 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,” he said.
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 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.
