NECA to CBN: obey N50 stamp duty ruling

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ABUJA FEBRUARY 3, 2017 – The Nigeria Employers Consultative Association (NECA) has urged the Central Bank of Nigeria (CBN) to comply with the Court of Appeal’s ruling stopping the deduction of N50 stamp from deposits of N1000 and above.

In January, last year, CBN directed banks to deduct duty from deposit of N1,000 and above into current account. Last April 21, the appeal court ordered that the deductions be stopped, because they were illegal.

NECA Director-General Mr. Segun Oshinowo accused CBN of not complying with the ruling. He said the deduction affected corporate bodies, among others.

“NECA and organised businesses had opposed attempts by the Nigeria Postal Service (NIPOST) to compel companies to affix N50 postal stamp on all receipts, invoices and documents evidencing transaction of N1,000 and above,” he said.

Oshinowo said it was worrisome that CBN has refused to comply with the ruling on the matter between Kasmal International Services Ltd. and Access Ban and 23 others.

He said: “NECA has expressed concern over the failure of the CBN to reverse its earlier directives to all Deposit Money Banks (DMB) to halt the charging of N50 per eligible transaction in accordance with the assumed provisions of the Stamp Duties Act and Federal Government Financial Regulations (2009).

The CBN is, hereby, advised to do the needful without delay by directing cessation of further deductions and commence the refund of all accrued deductions in the past to their customers.

“NECA urges the President Muhammadu Buhari administration to restrain its operatives from pursuing policies that will increase the burden on the citizenry, both corporate and individuals. It affirmed that stamp duty’s applicability is limited to purchases involving large sums like a house purchase or importation of goods as against the position of applying N50 postage stamp to all receipts given by any bank (or financial institution) in acknowledgement of services rendered in respect of electronic transfer and teller deposits.”

DCSL 90X780

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