N50 Stamp Duty Is Per Transaction, Not Per N1000 – CBN

The Central Bank of Nigeria (CBN) has clarified that the N50 stamp duty imposed on bank customers is to be charged per transaction and not per volume of N1,000. Hence, irrespective of the amount, the sum of N50 is to be charged provided such a transaction is N1000 and above.

Director, Corporate Communications CBN, Mallam Ibrahim Mu’azu, who said this in a statement made available to LEADERSHIP Friday yesterday, said it has become necessary to make the clarification following some misconceptions among members of the public.

According to him, the guidelines for the implementation of the Stamp Duty on bank transactions, which advised banks and other financial institutions operating in the country to commence the collection of N50, apply to eligible transactions only.

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 of the value of N1000 and above.

He also said that some exemptions specified in the scheduled to the Stamp Duty Act 2004 (under the caption “receipt”) include payments of salaries and wages, payments, deposits by self to self whether inter or intra bank among others.

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 deposit money banks (DMBs) under its supervision to commence the collection of the duty on behalf of the federal government of Nigeria, in compliance with the provisions of the Stamp Duty Act 2004 and the Federal Government of Nigeria (FGN) Financial Regulation of 2009.

“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,” he said.