Banks slam charge stamp duty on etransactions above N10,000

Nigerian banks may have reintroduced the N50 stamp duty charges on electronic payments in the country despite the public outcries that have greeted the controversial charge.

Some banks have already sent messages informing their customers that the charge would be imposed on transactions above N10,000.One of such banks is Providus Bank which said that “stamp duty will apply to all credit received into current and savings accounts in respect to electronic transfer and teller deposits of N10, 000 and above”

“However this shall not apply to deposits and transfers you make into your account (i.e self to self deposits and transfers)”, Providus Bank stated.

Recall that the backlash from Nigerians and industry stakeholders of the Financial Bill which imposed N50 charge on transactions above N10,000 as against payment above N1,000.

The bill exempted bank transfers between two accounts owned by the same person or organisation.The new bill aims to repeal a provision of the Stamp Duty Act 2014, which had a threshold for receipts chargeable with stamp duty as N4 and above.

Central Bank of Nigeria (CBN) had later last year, in a circular to deposit money banks, processors and switches authorised banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions

They were asked to charge a duty of N50 for services rendered in respect of electronic transfers and teller deposits from N1,000 and above on behalf of the Nigeria Postal Service.

The directive was condemned by mobile money agents, retailers, merchants and bank customers who said it would discourage the cashless transaction and financial inclusion agenda of the Federal Government.