Stamp Duty Charge To Take Effect On N10,000 Dealings.

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stamp duty charge

Stamp Duty Charge To Take Effect On N10,000 Dealings.

Stamp duty charges, which were to be charged on every transaction worth N1,000 and above, will now come into effect on dealings of N10,000 and above, according to a report by PUNCH.

The change is in the financial bill currently before the National Assembly.

The finance bill intends to overhaul a series of tax provisions including the stamp duty act.

The Central Bank of Nigeria had in September issued a circular to deposit money banks, processors and switches on September 17, 2019, authorizing them to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions.

In essence, retailers were to remit N50 on every N1,000 transaction and not on bulk sales as was the norm.

The charges were to be made on electronic transfers and teller deposits on behalf of the Nigeria Postal Service.

Mobile money operators, banks and stakeholders in the space condemned the move as being against the inclusion and cash policies of the government.

The CBN had at the time as well placed a surcharge on cash deposits and withdrawals from N500,000 for individuals and corporate entities.

Experts had at the time explained that both policies were conflicting, saying it would encourage traders to avoid the banking system and force people to pay for goods and services with cash.

These are two outcomes the government is intending to combat through the CBN.

While certain Nigerians would be spared from paying extra when using a point of sale terminal, paying a two percent surcharge for making deposits is still against the country’s national financial inclusion strategy.

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