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.