CBN Finally Clarifies N50 Stamp Duty On Bank Transactions

The Central Bank of Nigeria on Thursday explained some misconceptions among members of the public on the implementation of stamp duty on bank transactions.

The CBN had, in a circular on Tuesday, urged Deposit Money Banks and other financial institutions to support the Federal Government in boosting its revenue through the collection and remittance of statutory charges on receipts to Nigerian Postal Service under the Stamp Duties Act.

Speaking with journalists in Abuja, the Director, Corporate Communications, CBN, Mr. Ibrahim Mu’azu, said the guidelines simply advised banks and other financial institutions operating in the country to commence the collection of N50 on eligible transactions only.

According to him, such eligible transactions include all receipts given by a bank or financial institution in acknowledgment of services rendered in respect of teller deposits and electronic transfers for the value of N1,000 and above.

Mu’azu hinted that the implementation of the stamp duty at this point in time emanated from a Federal High Court order that the CBN should direct the DMBs under its supervision to commence the collection of the duty on behalf of the Federal Government, in compliance with the provisions of the Stamp Duty Act 2004 and the Federal Government of Nigeria Financial Regulation of 2009.

He said, “Consequently, the DMBs have been directed to commence the collection of the duty thus: Banks are to collect the N50 stamp duty and above, remit same to the Nigerian Postal Services on behalf of the customer.

“The N50 stamp duty is charged per transaction and not per volume. Hence, irrespective of the amount, the sum of N50 is to be charged provided such a transaction is N1,000 and above.”

According to the CBN spokesperson, there are, however, some exemptions including payment of salaries and wages, payments and deposits or self to self whether inter- or intra-bank.

Meanwhile, the Nigeria Employers’ Consultative Association has kicked against the directive of the CBN to banks to charge N50 per transaction.

According to a statement by the association, organised businesses are opposed to the attempt by NIPOST to force companies to pay N50 for postal stamp on all receipts, invoices and documents with transactions of N1,000 and above.

The Director-General, NECA, Mr. Olusegun Oshinowo, noted that there was a pending case at the Court of Appeal on the subject matter involving Kasmal International Services Limited, Access Bank and 23 others.

The Punch

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