IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 10 NO. 8 2024
DOI: 10.56201/ijssmr.v10.no8.2024.pg1.17

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Electronic Payment System and Stamp Duty Tax in Nigeria

Ihenyen Joel Confidence, PhD and Mefunu Claudius Egba

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Abstract

This study examined electronic payment system and stamp duty tax revenue. The study employed Unstructured Supplementary Service Data (USSD) transactions, Point of Sales (POS) transactions and Web Based Payment (WBP) Platforms as proxy to electronic payment system (independent variable), while stamp duty tax revenue was the dependent variable. Quarterly time series data from 2013 to 2022 (10 years) of figures representing the volume of transactions carried out from the above mentioned platforms were harnessed from the CBN statistical bulletin of 2023 while value of revenue collected as stamp duty was harnessed from the Federal Inland Revenue Service (FIRS) of Nigeria official website. Simple statistics and Unit Root test were used to validate the data, Ordinary Least Square Regression was used to analyze the nature and significance of effect the independent variable exerts on dependent variable. It was discovered that each of the component of electronic payment system adopted in the study have peculiar effect on stamp duty tax revenue. The study thus recommended that policy makers should not rely on improvement of unstructured supplementary service data and point of sales transactions as a means of improving stamp duty tax revenue rather, they should promote the use of web payment platforms as the medium was seen to significantly influence stamp duty tax revenue positively. It was also suggested that the stamp duty tax be dissected into its’ fixed and ad valorem component and be studied so as to have a more clear understanding of its nature with regards to the digital payment systems.

keywords:

Electronic payment system, Unstructured Supplementary Service Data, Point of Sales,

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