NECA urges CBN to obey ruling on N50 stamp duty

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

The CBN had 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.

The Director-General of NECA, Mr. Segun Oshinowo, yesterday said that the apex bank had failed to comply with the ruling.He said 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 (NIPOST) to compel companies to affix a N50 postal stamp on all receipts, invoices and documents evidencing transaction of N1,000 and above,” he noted.

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.

He stressed: “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 President Muhammadu Buhari’s 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.”