NECA demands CBN’s Compliance with Court of Appeal’s Ruling on N50 Stamp Duty

NIGERIA Employers Consultative Association, NECA, has expressed serious concern over the failure of the Central Bank of Nigeria (CBN) to comply with the Court of Appeal’s ruling in the matter between Kasmal International Services Limited and Access Bank and 23 others, by directing all Deposit Money Banks (DMB) to discontinue the illegal charging of N50 per transaction in lieu of Stamp Duties.

It would be recalled that the CBN had directed Banks to commence the illegal deductions which did not only affect Corporate Bodies but all Nigerians, including the very vulnerable ones. NECA and 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. NECA had also kicked against the CBN’s directive to Banks based on its illegality and in the light of pending litigation in the Courts on the matter.

NECA, in a press statement by its Director General, Mr. Segun Oshinowo, noted that there has been a landmark ruling in the case at the Court of Appeal on this subject matter between Kasmal International Services Limited and Access Bank and 23 others, which declared the deductions illegal.

The statement read in part: “The Nigeria Employers’ Consultative Association (NECA) has expressed grave concern over the failure of the Central Bank of Nigeria (CBN) to reverse its earlier directives to all Deposit Money Banks (DMB) to halt the charging of N50 per eligible transaction in accordance with the assumed provisions of the Stamp Duties Act and Federal Government Financial Regulations (2009). The CBN is hereby advised to do the needful without delay by directing cessation of further deductions and commence the refund of all accrued deductions in the past to their customers”.

NECA urges the Buhari administration to restrain its operatives from pursuing policies that will increase the burden on the citizenry both corporate and individuals. It affirmed that 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.”