We sometimes wonder whether the Governor of the Central Bank of Nigeria actually consults properly before firing off one of his half baked or economically disruptive regulations!
The Central Bank of Nigeria (CBN) on 15 January 2016 released a circular directing all deposit money banks and financial institutions to commence the charging of N50 as stamp duties on all receipts given in acknowledgement of services rendered for eligible transactions. A copy of the circular may be assessed by clicking here
It is general knowledge that the significant fall in global petroleum prices and its adverse effect on the Nigerian economy, has compelled our financial authorities to look inwards for revenue generation.
One major issue about the tax is its regressive nature as the stamp duty is a fixed rate rather than a graduated or ad valorem rate. This will therefore impact small business and low income individuals significantly more than large corporations and rich people.
For all avoidance of doubt the following receipts are however exempted from imposition of stamp duties:
- Payments of deposits or transfer by self to self whether inter or intra bank; and
- Any form of withdrawals/transfers from saving accounts;
It should be noted that these charges are only payable by receiving accounts;
Let us keep our eyes peeled and pray that the CBN does not totally collapse the cashless Nigeria initiative by its policies.