The Central Bank of Nigeria (CBN) has clarified that the N50 stamp duty imposed on bank customers is not per N1000 but on the whole amounts received as long as it is beyond N1000.
The apex bank had earlier announced that a N50 duty would be imposed on an amount received by a customer exceeding N1000 but there has been rumour that the N50 would be deducted per N1000 received.
In order to avoid any further confusion, here is what you need to know about the CBN’s N50 stamp duty:
- It is an Act that was passed into law called the Stamp Duties Act 2004 and Federal Government Financial Regulations 2009, but now being implemented in 2016.
- The Stamp Duty charge is not being imposed by the Banks, but by the Federal government through the CBN.
- The imposition of the Stamp Duties Act at this time is to enhance the governments revenue generation drive which has become necessary due to the fall in global oil prices.
- All receipts, whether Cash or Electronic transfers from N1000 and above into a Current account is eligible and will be charged N50 stamp duty.
- Only Current accounts are eligible to be charged Stamp Duty on all receipts.
- The following receipts are exempted from the imposition of Stamp Duty:
- Deposits or Transfers made by SELF into another account in the same bank and/or other banks.
- Any Transfers into a Savings account.
- Any Withdrawals from a Savings account.
- The Stamp Duty is charged only to the receiving account i.e. the account receiving the money.
- The N50 Stamp Duty will be charged per transaction and not per volume; that is any transactions from N1,000 and above.
- The monies collected does not belong to the Banks, but the Federal Government. The Banks are only a channel for collecting and remitting the money to the Federal Government.
- Under the schedule to the Stamp Duty Act 2004, other exemptions specified includes payments of salaries and wages etc.