N50 stamp duty on bank deposits and transfers illegal: Federal High Court
The Asaba Division of the Federal High Court has declared as illegal all ongoing stamp duty deductions by Nigerian banks.
Justice Nnamdi Dimgba said the Central Bank of Nigeria and all banks should immediately stop further collections of stamp duties from Nigerians because there was no provision for such taxes under the Stamp Duties Act.
The judgement came on December 9 in a case filed against the CBN, Zenith Bank and the attorney-general by Rupert Irikefe, a businessman.
Mr. Irikefe was also awarded N500,000 in damages for the inconveniences he suffered when deductions were imposed on his bank account starting in January 2016.
Nigerian banks have been charging N50 as stamp duties on transactions above N1,000 across the country, a controversial policy that has long been criticised by citizens who saw it as exploitative and one-sided. The banks were asked to impose the charges by the CBN.
Mr. Dimgba also said the banks should suffer additional damages because they failed to comply with a previous ruling on the matter by the Court of Appeal in 2014, continuing to charge stamp duties on transactions despite being aware of the appellate court position on the matter.
Download full court judgement here.
More from Peoples Gazette
Lagos supported businesses with money ranging from N50,000 to N5 million to beneficiaries to rebuild their businesses with funding from the government.
“The service shall, without further notice, apply the provisions of Section 31 of the Federal Inland Revenue Service (Establishment) Act, 2007 (as amended) to recover taxes due from the defaulters’
“If the Yoruba can stand as a country; if the Igbos and the Hausa/Fulani can stand as separate countries, where do we want the minority groups to be?”
“The government has always paid ransom. Not only this government. Even during Jonathan. They paid ransom. But they denied it.”
“You have called on me to lead you as the president and, I will heed to your call when the time comes. You must make your voices crystal clear.”