22 January 2016

Nigeria: N50 Stamp Duty On Transactions - Salary Accounts Exempted, Says CBN

Payments of salaries and wages as well as payments and deposits for self-to-self transactions whether inter or intra bank are exempted from the N50 stamp duty policy, the Central Bank (CBN) has said.

Mallam Ibrahim Mu'azu, CBN Director, Corporate Communications, made the clarification on Thursday in Abuja in a statement issued to newsmen.

The CBN recently introduced the policy which was contained in the Stamp Duty Act, 2004 and the Federal Government of Nigeria's Financial Regulation of 2009.

The policy is part measures to boost tax revenue for the federal government.

The statement said that charge was on all receipts issued by banks or financial institutions in acknowledgment of services rendered in respect of teller deposits and electronic transfers for a value of N1,000 and above.

"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 under its supervision to commence the collection of the duty on behalf of the federal government.

"Consequently, the money deposit banks have been directed to commence the collection of the duty.

"Banks are to collect the N50 stamp duty and remit same to the Nigerian Postal Services (NIPOST) on behalf of the customer.

"The N50 stamp duty is charged per transaction and NOT per volume. Hence, irrespective of the amount, the sum of N50 is to be charged provided such a transaction is N1,000 and above.

"There are however some exemptions and these include payments of salaries and wages, payments and deposits for self-to-self transactions whether inter or intra bank among others," the statement said.

Nigeria

World Bank Officials Drown in Nigeria

Four World Bank officials have drowned at Egbe Dam in Egbe Ekiti, Gbonyin Local Government Area of Ekiti State,… Read more »

Copyright © 2016 Vanguard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 1,000 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.