CBN orders banks to charge on stamp duties

Effective immediately, the Central Bank of Nigeria (CBN) has ordered deposit money banks and other financial institutions to commence the charging of N50 per eligible transaction in accordance with the provisions of the Stamp Duties Act and the Federal Government Financial Regulations 2009.

This implies that all receipts given by any banks or other financial institutions in acknowledgment of services rendered in respect of electronic transfer or teller deposits from N1,000 and above shall be charged.

The development is part of Federal Government’s effort to boost revenue base, as it is exploring revenue opportunities in the non-oil sectors, especially taxes and rates.

However, receipts from payments deposits or transfer by self to self, whether inter or intra bank, and any form of withdrawals/transfers from saving accounts are exempted from imposition of stamp duties.

The CBN noted in a circular to all banks and other financial institutions that the charges were payable by receiving accounts.

According to the apex bank, each deposit money bank 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 banks to CBN NIPOST stamp duty collection account number, while other financial institutions shall remit their stamp duty collections to any deposit money bank of their choice.

The CBN enjoined banks and other financial institutions to support government’s 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.