CBN reduces Banks stamp duty charges to N50

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The Central Bank of Nigeria (CBN) has directed banks operating in the country to reduce stamp duty charges to N50 per transactions in accordance with provisions of the Stamp Duties Act.

The direction is part of CBN initiatives to boost Federal Government revenue base in the non-oil sectors especially taxes and rates.

CBN in its circular explained that it is in recognition of this fact that Banks and other financial institutions are enjoined to support Governments’ revenue generation drive through compliance with the provisions of the Stamp Duties Act, LFN 2004 as reinforced by the court judgment in Suit No FHC/L/CS/1710/2013.

The apex banking regulating body noted that with immediate effect, all Deposit Money Banks (DBMs) and other financial intuitions should commence the charging of N50 per eligible transactions in accordance with provisions of the Stamp Duties Act and Federal Government Financial Regulations 2009, that is, all receipts given by any bank or other financial institution in acknowledgement of service rendered in respect of electronica transfer and teller deposits from N1, 000 and above.

The circular expressed that for the avoidance of doubt the following receipts are however exempted from imposition of Stamp Duties, Payments deposit or transfer by self to self-weather inter or intra bank and any form of withdrawal/ transfers from saving accounts.

The circular noted that, “each DMB shall open an account designated as NIPOST Stamp Duties Account into which all charges collected shall be paid.

“Other Financial Institution shall remit their Stamp Duty collections to any DMB of their choice,” the circular explained.

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