Tax Newsletter: No more ₦50 stamp duty on bank deposits- Federal High Court

A Federal High Court (FHC) on 13 March 2017, delivered a judgment on the validity of the circular issued by Central Bank of Nigeria referenced CBN/GEN/DMB/02/006, in the case between Retail Supermarkets Nigeria Limited (AKA Shoprite) and the defendants Citibank Nigeria Limited (Citibank) and Central Bank of Nigeria (CBN).

The issue considered in the case is determining if the CBN circular which mandates banks and other financial institutions to enforce collection of ₦50 stamp duty on electronic transfers and teller deposits from ₦1,000 and above, aligns with the provisions of the Stamp Duties Act.

In delivering its judgment, the FHC held that the provisions of the CBN circular are inconsistent with the provisions of the SDA and as such are null and void.
 
Details of the case are fully examined HERE.

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