N50 Stamp Duty: CBN exempts salary accounts, self-to-self transactions

The Central Bank of Nigeria says the recently
introduced N50 stamp duty for all deposit
transactions will not be collected for Payments of
salaries and wages as well as payments and
deposits for self-to-self transactions whether inter
or intra bank.
This clarification was made in a statement sent
out by the Director Corporate communication of
CBN, Mallam Ibrahim Mu'azu yesterday January
21st.
The management of the apex bank had on
Monday January 19th sent out a circular to all
Deposit Money Banks and Other Financial
institutions titled, "Collection and Remittance of
statutory charges on receipts of Nigeria Postal
Service under theStamp Duties Act”, mandating it
to collect N50 stamp duty for deposit
transactions.
The N50 stamp duty is being introduced to help
increase the tax revenue of the Federal
government. Part of the statement released by
the CBN Director of Corporate Communication's
reads “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.