Are Banks Allowed To Charge Stamp Duty On Savings Account?

A recent report from the Punch Newspaper claims commercial banks of charging stamp duty on bank deposits. According to the paper; “Banks are no longer restricting the deduction of stamp duty on deposits made into current accounts, but now apply it to deposits made into savings accounts, investigation has shown:

However, a check on the CBN directive to banks to begin charging stamp duties reveal the charge is in order. According to the circular dated January 15, 2016 stamp duties can only be charged in the account of the receiver regardless of whether the account is a savings or current account. However, stamp duty cannot be charged from an account that received funds transferred from a savings account. See below;

A court ruling in November had rendered the collection of stamp duties as illegal, however banks continue to charge.

Ugo Obi-chukwu

Ugo Obi-chukwu "Ugodre" is a chartered accountant with over 16 years experience in financial management, corporate finance and financial analysis. He is also a retail investor and a personal finance advocate with over a decade experience investing in the Nigerian stock market. Ugo is the founder/Publisher of Nairametrics and blogs regularly on the website.

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