NECA wants CBN obey court ruling on N50 stamp duty

The Nigeria Employers Consultative Association (NECA) on Monday urged the Central Bank of Nigeria (CBN) to stop deduction of N50 stamp duty, in compliance with a Court of Appeal ruling.

The News Agency of Nigeria (NAN) reports that CBN in January 2016, directed banks to deduct N50 as stamp duty on any bank deposit with value of N1,000 and above into current account.

However, in a ruling on April 21, 2016, the Court of Appeal directed an end to the deduction, describing it as illegal.

In a statement in Lagos on Monday, the Director-General of NECA, Mr Segun Oshinowo, said that the CBN had failed to comply with the ruling.

According to Oshinowo, the deduction did not only affect corporate bodies but all Nigerians, including the vulnerable.

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

”NECA had also kicked against the CBN directive to banks based on its illegality and in the light of a pending litigation in the court on the matter,” he said.

The director-general said that it was worrisome that the apex bank had refused to comply with the ruling in the matter between Kasmal International Services Ltd. and Access Bank and 23 others.

”We (NECA) are concerned about the failure of CBN to reverse its directive to banks to halt charging of N50 per transaction.

”We advise the apex body to direct banks to stop further deductions and refund all deductions in the past,” Oshinowo said.

He appealed to government agencies to shun policies that would increase burden on the citizens.