Reps Approve Stamp Duty Collection On Electronic Transfers

The House of Representatives has passed a new Stamp Duty Bill, which seeks to amend and repeal the 2004 Stamp Duty Act. With the passage of the bill, the lawmakers have endorsed the controversial deduction of N50 from deposits into accounts with Deposit Money Banks across the country using electronic platforms.

The new bill also raised the bar for the collection of stamp duty on bank deposits from N1,000 to N3,000. Although the 2004 Stamp Duty Act approved the fixing of N50 stamp on documents witnessing transactions worth N1,000 and above, the law became controversial when banks were directed to deduct N50 on deposits in banks of N1,000 and above.

On the strength of the 2004 Act and a circular issued by the Central Bank of Nigeria in January 2016, banks operating in the country have been deducting N50 from deposits in bank accounts across the country.

Photo Caption: Yakubu Dogara Speaker House of Rep