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Nigeria gov't imposes N50 (less than a dollar) stamp duty on bank customers

Nigeria gov't imposes N50 (less than a dollar) stamp duty on bank customers

Nigeria

The federal government of Nigeria through the Central Bank on Tuesday imposed a N50 stamp duty on bank customers for money received into their accounts.

Following the new development, customers will henceforth pay N50 stamp duty for money received via electronic transfer, cash and cheques.

This order was contained in a statement to all deposit banks and other financial institutions titled “ Collection and Remittance of statutory charges on receipts of Nigeria Postal Service under the stamp Duties Act”.

Central Bank of Nigeria (CBN) stated that in an effort to boost its revenue base, the Federal Government of Nigeria is exploring revenue opportunities in the non-oil sectors especially taxes and rates.

In recognition of this fact, banks and other financial institutions are enjoined to support government’s revenue drive through compliance with the provisions of the Stamp Duties.

The country’s Apex bank has therefore issued a circular to all Deposit Money Banks (DMB) and other financial institutions to commence the charging of N50 per eligible transaction in accordance with the provisions of the Stamp Duties Act and Federal Government Financial Regulations 2009 with immediate effect.

That is, all receipts given by any bank or other financial institution in acknowledgment of services rendered in respect of electronic transfer and teller deposits from N1, 000 and above.

According to the CBN, “each DMB shall open an account designated as NIPOST Stamp Duties Account into which all charges collected shall be paid. The balances in such accounts shall be transferred monthly by the DMBs to CBN NIPOST Stamp Duty Collection Account No. 3000047517.”

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