Nigerians lambast FG over N50 tax on N1000 deposits

There is a groundswell of opposition to the newly introduced N50 stamp duty on deposits from N1000 and above by the Central Bank of Nigeria, CBN, as Nigerians lambaste the Federal Government over what they termed government’s excessive quest for revenue mobilisation.

The new policy, believed to be government’s response to dwindling revenue from oil, occasioned by the constantly falling prices of oil in the international market and a fall out of the visit to the country by the Managing Director of the World Bank, Christine Lagarde, Nigerians say would further impoverish Nigerians who are already bearing the brunt of a depressed economy.

It would be recalled that Lagarde, during her visit to the country, advocated that for the country to survive the current economic downturn, taxes must be raised.

Read also: Feeling endangered, lawyer withdraws Metuh’s suit against FG

The CBN in a circular, announcing the new policy, said it was being carried out under the Stamp Duties Act”

The circular reads in part: “As part of efforts to boost its revenue base, 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 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.

“In this regard, the CBN, pursuant to the provisions of its enabling laws, hereby issues this circular to all DMBs and other financial institutions: With immediate effect, all DMBs and other financial institutions shall commence the charging of N50 per eligible transaction in accordance with the provisions of the Stamp Duties Act and Federal Government Financial Regulations 2009, that is, all receipts given by any bank or other financial institution in acknowledgment of services rendered in respect of electronic transfer and teller deposits from N1, 000 and above; For all avoidance of doubt, the following receipts are however exempted from imposition of stamp duties: payments of deposits or transfer by self to self whether inter or intra bank; and any form of withdrawals/transfers from saving accounts; It should be noted that these charges are only payable by receiving accounts; Each DMB 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 DMBs to CBN NIPOST Stamp Duty Collection Account No. 3000047517; Other financial institutions shall remit their Stamp Duty collections to any DMB of their choice”.

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