BANKS may have added to the worry of Nigerians who are already struggling to make out a living during the period of COVID-19 crisis as payment of stamp duty takes effect. 

The Finance Act, 2019 resolved the controversy over the legality of the N50 stamp duty on electronic receipts and transfer of funds by setting the threshold for the charge at N10,000 for all types of accounts.

But Nigerians have expressed frustration on various platforms over this deduction and its impact on their finances.

Adeoye Martins a  sales boy in Abuja who spoke to The ICIR said: " UBA has deducted about N1,500 from my account in the name of stamp duty and the money in my account is not mine, I have to look for the money back."

Silas Mathias said, "These banks are just ripping us off, I would take my money away from the bank and keep at home before I wake up one day and they have deducted all I have."

A Twitter user @Prisielebz and an Access Bank customer tweeted, “I don't understand the debits made by Access Bank on customers’ accounts in the name of stamp duty. What exactly is going on?”

Another twitter user @banadvinice117 posted: "@UBAGroup @UBAFoundation You guys deducted about 900(50naira x18) between March and April. You're charging 1,100 for March and Feb AGAIN .. what the hell is stamp duty. I need explanation abeg!!!!!!!!! #DAYLIGHTROBBERY #COVID19."

According to Price Waterhouse and Coopers (PWC), under the Stamp Duty Act, stamp duty is payable on any agreement executed in Nigeria or relating, whatsoever, to any property situated in or to any matter or thing done in Nigeria.

Instruments that are required to be stamped under the Stamp Duties Act must be stamped within 40 days of first execution.

All deposit banks and financial institutions are required to charge stamp duties of NGN 50 on every eligible transaction above NGN 10,000.

There are exemptions for transactions between accounts held by the same bank customer and for salary accounts.

READ MORE: https://www.icirnigeria.org/banks-add-to-worry-of-nigerians-with-stampduty-deductions/