CBN Extends Stamp Duty Collection To Savings Accounts
Banks are no longer restricting the deduction of stamp duty on deposits made into current accounts, but now apply it to deposits made into savings accounts, investigation has shown. The Central Bank of Nigeria had through a circular issued on January 15, 2016 directed the Deposit Money Banks to deduct N50 stamp duty on each deposit made into current accounts with a value of N 1000 and above in order to boost government’ s revenue drive and in compliance with Stamp Duties Act, 2004. The apex bank anchored its directive on a court ruling obtained by Kasmal International Services Limited in 2014 to the effect that the 22 banks operating in the country should remit more than N 6 tn to the Nigerian Postal Services through the company as the stamp duty they were supposed to have collected since the Stamp Duties Act was passed into law. However , the CBN exempted savings accounts from the deduction of stamp duty . The circular stated, “ With immediate effect , all DMBs and other fi...