Ofunaofu:
NIGERIA Employers Consultative Association, NECA, has expressed serious concern over the recent directive of the Central Bank of Nigeria, CBN, to all Deposit Money Banks, DMB, to commence charging N50 per eligible transaction in accordance with the provisions of the Stamp Duties Act and Federal Government Financial Regulations (2009). The umbrella body for employers in the country in a
statement while calling for immediate reversal of
the directive, warned that if allowed to stay would
not only worsen the poverty level in the country, it
would also, increase the burden on firms in the
country.
NECA in the statement by its Director General, Mr.
Segun Oshinowo, equally noted that there was a
pending case at the Court of Appeal on this subject
matter between Kasmal International Services
Limited and Access Bank and 23 others, and urged
the Federal Government not to increase the burden
on the citizens and firms in the economy
The statement read in part: “The Nigeria Employers’
Consultative Association (NECA) has expressed
grave concern over the recent directive of the
Central Bank of Nigeria (CBN) to all Deposit Money
Banks (DMB) to commence the charging of N50 per
eligible transaction in accordance with the
provisions of the Stamp Duties Act and Federal
Government Financial Regulations (2009).
It would be recalled that 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.
“There is a pending case at the Court of Appeal on
this subject matter between Kasmal International
Services Limited and Access Bank & 23 others.
NIPOST is aware of this development and all
parties, as law abiding citizens, were expected to
await the pronouncement of the court.”
He stated further that “the power to administer the
Stamp Duties Act is within the purview of the
Commissioner for Stamps as provided for in
Section 6 of the Act, and not NIPOST or CBN and
that the Act did not make the affixing of postage
stamp mandatory, neither did the Act specify the
value to be a N50 postage stamp. NECA urges the
Buhari administration not to introduce policies that
will increase the burden on the citizens and firms
within the economy.
Nigeria should take a cue from other climes where,
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.”
Mr. Oshinowo advised that “President Buhari will do
well by ignoring the call by the Central Bank of
Nigeria (CBN) to boost the revenue base of the
Federal Government through this means which will
increase the burden on citizens and kill struggling
businesses.”
http://www.vanguardngr.com/2016/01/neca-demands-reversal-of-cbns-directive-on-n50-stamp-duty/