Every action has a reaction that follows, with this premonition many Nigerians have demostrated their disapproval concerning the announcement by CBN instructing all DMBs (Deposit Money Banks) in the country to place a N50 charge on every transaction from N1,000.
In order to avoid any further confusion, here are 10 things you need to know about the CBN’s N50 stamp duty on bank transactions:
1. It is an Act that was passed into law called the Stamp Duties Act 2004 and Federal Government Financial Regulations 2009, but now being implemented in 2016.
2. The Stamp Duty charge is not being imposed by the Banks, but by the Federal government through the CBN.
3. The imposition of the Stamp Duties Act at this time is to enhance the governments revenue generation drive which has become necessary due to the fall in global oil prices.
4. All receipts, whether Cash or Electronic transfers from N1000 and above into a Current account is eligible and will be charged N50 stamp duty.
5. Only Current accounts are eligible to be charged Stamp Duty on all receipts.
6. The following receipts are exempted from the imposition of Stamp Duty:
a. Deposits or Transfers made by SELF into another account in the same bank and/or other banks.
b. Any Transfers into a Savings account.
c. Any Withdrawals from a Savings account.
7. The Stamp Duty is charged only to the receiving account i.e. the account receiving the money.
8. The N50 Stamp Duty will be charged per transaction and not per volume; that is any transactions from N1,000 and above.
9. The monies collected does not belong to the Banks, but the Federal Government. The Banks are only a channel for collecting and remitting the money to the Federal Government.
10. Under the schedule to the Stamp Duty Act 2004, other exemptions specified includes payments of salaries and wages etc.
With this development bank customers will turn philatelists (a thriving business in stamp collection), is feasible when the stamps that are paid for are seen.