Private sector set to drag CBN, FIRS to court over N50 stamp duties deductions by banks

The failure of banks to stop collection of N50 from customers as stamp duty charges is threatening to set the organized private sector against some government agencies.

The organised private sector, under the aegis of Nigeria Employers’ Consultative Association (NECA) is on the war path with the Federal Inland Revenue Services (FIRS) and the Central Bank of Nigeria (CBN).

The law allows N20 stamps duty reduction on every payments exceeding N1000, but the banks are currently deducting N50.

But NECA said it had concluded plans to head to court to demand that an order be issued to the government agencies to stop forthwith the collection of excess stamp duty charges, which it said has been leading to a deduction of excess 75 per cent outside what is statutorilly allowed by the FIRS Act.

According to the Director General of NECA, Olusegun Oshinowo, while addressing newsmen in Lagos on Wednesday, there were other victims crying fowl over the abuse.

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He recalled that the Federal Court of Appeal had in the matter between Kasmal International Services Limited and Access Bank and 23 others, directed all deposit money banks to discontinue the illegal charging of N50 per transaction in lieu of stamp duties .

He said despite calls by NECA and other well meaning Nigerians, the CBN is yet to direct banks to obey the judgment of the Court.

Oshinowo further stated that outright disobedience of court order by the CBN and FIRS is not good for the country.

“Surprisingly, neither the CBN nor FIRS had instructed the banks and other revenue collecting outfits to stop the collection of the illegal stamp duty,” the DG said.

He said anytime the relevant agencies decided to obey the law, his organisation would demand for a refund to all individuals and organisations already affected by the act of disobedience to the court’s rulings on the matter.

But the CBN spokesman, Isaac Okoroafor denied the allegation of the apex bank disobeying the law.

He ssid :”It is not in our character to go contrary to any court ruling. Perhaps NECA can say that its leadetship is yet to come to terms with the fact that all the process of the court is not through as regards the stamp duty.”

An official of FIRS said the agency had already established a system known as integrated stamp duties portal (ISDS), an online data-based portal, which is a self-service tool, in use in other countries to monitor all stamp duties collections.

He added that if there is any discrepancy in the system it would be easily sorted out by the innovation.

According to him, refund is possible if the claimants have proof of over payment of duties expected of them, adding that NECA has no case as regards that.

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