The Public Accounts Committee (PAC) of Nigerias House of Representatives has instructed Guaranty Trust Bank (GTBank) to calculate and remit the Value Added Tax (VAT) owed on commissions earned through the Remita platform between 2015 and 2022. This directive follows an ongoing investigation into alleged revenue leakages associated with Remita transactions and non-compliance with standard operating procedures.
The committee, chaired by Representative Bamidele Salam, raised concerns regarding the remittance of VAT on Remita collections, as well as the fees charged during the initial phase of Remita transactions.
In response, GTBank's Executive Director, Ahmed Liman, acknowledged that the bank had not remitted VAT for an eight-year period, stating that it was their understanding that Remita was responsible for distributing commission fees and handling VAT remittance accordingly.
On the matter of transaction fees, Liman explained that the bank charges a 0.75% fee on all payments made via the Remita platform and disclosed that GTBank received N254,489,013 from the Accountant General's office through Remita in 2018.
Following the inquiry, the PAC ordered GTBank to remit the outstanding VAT on commissions earned through the Remita platform to the federal government's recovery account held by the Central Bank of Nigeria (CBN).
