The N50 stamp duty imposed on bank account holders for all monies transferred into their accounts, whether cash/cheque or electronic transfer, as earlier announced by the Central Bank of Nigeria, has been trailed by a lot of misconceptions. As a result of this, the Central Bank on Thursday, made their previous message less confusing as Mallam Ibrahim Mu’azu, Director, Corporate Communications, clarified that the N50 stamp duty is not charged per volume of N1000 but charged per transaction. This means that no matter the amount of money that is paid into your account, as long as it is more than N1000, the bank is only permitted to deduct a levy of N50.
Mr. Mu’azu who made this statement while addressing journalists in Abuja, made it clear that the stamp duty guideline advised all banks and financial institutions functioning actively in the country to collect N50 only on eligible transactions. He explained that it was important to clarify this issue as a result of some misunderstanding among some members of the public.
As he said, eligible transactions comprises 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 N1000 and above.
He also stated that while this charge is placed on all transactions, there are some exemptions to the rule in cases of payments of salaries and wages, payments, deposits by self to self whether inter- or intra-bank, among others. These exemptions are identified in the scheduled to the Stamp Duty Act 2004 (under the caption “receipt”).
The CBN Director of Corporate Communications revealed that the implementation of the stamp duty levy came consequent to an order issued by the Federal high court compelling the CBN to direct Deposit Money Banks (DMB) to collect the duty on behalf of the Federal government, in concession with the provisions of the Stamp Duty Act 2004 and the Federal Government of Nigeria Financial Regulation of 2009.
According to Mallam Ibrahim,
Consequently, the DMBs have been directed to commence the collection of the duty thus: Banks are to collect the N50 stamp duty and remit same to the Nigerian Postal Services (NIPOST) on behalf of the customer.