Banks to start collecting stamp duty on all transactions on behalf of FG

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The Central Bank of Nigeria (CBN) has commenced the implementation of N50 stamp duty policy. The policy which was contained in the Stamp Duty Act, 2004 and the Federal Government of Nigeria’s Financial Regulation of 2009 was not fully implemented before now.

According to a statement by Mallam Ibrahim Mu’azu, CBN’s Director, Corporate Communications, the policy is part of measures to boost tax revenue for the federal government. The statement said that charge was on all receipts issued by banks or financial institutions in acknowledgment of services rendered in respect of teller deposits and electronic transfers for a value of N1,000 and above.

“The implementation of the Stamp Duty at this point in time emanated from a Federal High Court order that the CBN should direct deposit money banks under its supervision to commence the collection of the duty on behalf of the federal government.

“Consequently, the money deposit banks have been directed to commence the collection of the duty.

“Banks are to collect the N50 stamp duty and remit same to the Nigerian Postal Services (NIPOST) 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.

“There are however some exemptions and these include payments of salaries and wages, payments and deposits for self-to-self transactions whether inter or intra bank among others,’’ the statement said.

Hmmm, so expect an additional N50 charge on your bank transactions going forward. Guess this will give the government extra income in face of dwindling oil prices.

Credits: NAN

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