Political

Reps Summon Bank MDs Over Non-remittance Of Stamp Duty Charges

Reps Summon Bank MDs Over Non-remittance Of Stamp Duty Charges

By ADEBIYI ADEDAPO, Abuja

The House of Representatives Committee on Telecommunications has summoned chief executives of banks in the country‎ over non-remittance of stamps duty charges to the federal government.

The chief executives are expected  to explain the system adopted in remitting electronic stamp duties charged on their customers and their detailed remittances, if any.

Chairman of the Committee, Hon. Saheed Akinade-Fijabi directed the committee’s secretariat to write letters, inviting the chief executives to explain  how the charges are accurately remitted to the Treasury Single Account (TSA).

The committee also seeks to know whether or not savings accounts are being charged.

LEADERSHIP gathered that the Managing Director of about five commercial banks have agreed to appear before the committee today. The banks that have so far expressed readiness to offer explanations include; Skye Bank, Guaranty Trust Bank, Diamond Bank, Eco Bank, Access Bank.

Other commercial banks are yet to respond to the committee’s communication in this regard.

The Central Bank of Nigeria had in a circular issued on January 15, 2016 directed the Deposit Money Banks to deduct N50 stamp duty on each deposit made into current accounts with a value of N1,000 and above in order to boost government’s revenue drive and in compliance with Stamp Duties Act and Federal Government’s Financial Regulations 2009.

The circular stated, “With immediate effect, all DMBs and other financial institutions shall commence the charging of N50 per eligible transaction in accordance with the provisions of the Stamp Duties Act and the Federal Government’s Financial Regulations 2009; that is, all receipts given by any bank or other financial institution in acknowledgement of services rendered in respect of electronic transfers and teller deposits from N1, 000 and above.”

By the CBN directive, savings accounts are exempted from the deductions, but the committee observed that some banks extended the deductions to savings accounts.

“For the avoidance of doubt, the following receipts are, however, exempted from ˜the imposition of stamp duties: payment deposits or transfers by self to self, whether inter or intra bank; and any form of withdrawals/transfers from savings accounts.”

 

The post Reps Summon Bank MDs Over Non-remittance Of Stamp Duty Charges appeared first on leadership.ng.

Source: Political

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