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Banks to charge stamp duties fee as FG seeks to boost revenue

By on January 20, 2016

In line with the federal government’s drive to shore up non-oil revenue, the Central Bank of Nigeria (CBN) has directed commercial banks as well as other financial institutions under its regulation, to with immediate effect commence charging N50 per eligible transaction in accordance with the provisions of the Stamp Duties Act and the Federal Government Financial Regulations 2009.
The fee would be charged on all receipts given by any bank or other financial institution in acknowledgement of services rendered in respect of electronic transfer and other teller deposits from N1,000 and above.
The CBN stated this in a circular titled: “Collection and Remittance of Statutory Charges on Receipt to Nigeria Postal Service (NIPOST) Under the Stamp Duties Act,” that was posted on its website yesterday.
It however explained that payments deposits or transfer by self to self whether inter or intra bank; and any form of withdrawals/transfers from savings accounts, are exempted from imposition of stamp duties. Also, the charges would only be paid by receiving accounts.
The central bank explained: “As part of efforts to boost its revenue, the federal government of Nigeria is exploring revenue opportunities in the non-oil sectors especially taxes and rates. It is in recognition of this fact that banks and other financial institutions are enjoined to support government’s revenue generation drive through compliance with the provisions of the Stamp Duties Act, LFN 2004 as reinforced by the court judgement in Suit No FHC/L/CS/1710/2013.
“With immediate effect, all deposit money banks (DMBs) and other financial institutions shall commence charging N50 per eligible transaction in accordance with the provisions of the Stamp Duties Act and the Federal Government Financial Regulations 2009, that is, all receipts given by any bank or other financial institution in acknowledgement of services rendered in respect of electronic transfer and other teller deposits from N1,000 and above.
“Each 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 the banks to CBN NIPOST Stamp Duties Collection Account. Other financial institutions shall remit their Stamp Duty Collections to any DMB of their choice. Please be guided accordingly and ensure strict compliance.”
The 2016 appropriation sent to the National Assembly earlier Nigeria is expected to be funded majorly from non-oil revenue. In the budget estimates, non-oil revenues, comprising Company Income Tax (CIT), Value Added Tax (VAT), Customs and Excise duties, and Federation Account levies, will contribute N1.45 trillion.

 

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