Business

Obey Appeal court ruling on N50 stamp duty, NECA tells CBN

Published

8 years ago

January 31, 2017

Olu Emmanuel

Spread The News

By Odunewu Segun

The decision of the federal government to increase revenue through the collection of N50 stamp duty on bank deposit with value of N1, 000 and above may suffer going by the suit instituted against the Central Bank of Nigeria by the Nigerian Employers Consultative Association (NECA).

National Daily gathered that in a ruling by the Court of Appeal on April 21, 2016 on a case brought before it by NECA, the court gave judgement in favour of NECA, directing the CBN to stop the deduction, and also describing the deduction as illegal.

However, the Central Bank of Nigeria is yet to comply with the Appeal Court directives, National Daily investigation has learnt.

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.”

Oshinowo added that NECA 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.

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.

Recall that the Central Bank of Nigeria 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. The apex bank in another circular, a year after in January 2017 extended the collection to saving account.