The court found the N50 stamp duty on banking transactions illegal
N50 stamp duty levied on depositors by the Central Bank of Nigeria has been declared illegal. A federal high court, sitting in Asaba state in the Delta, ruled that banks were illegally charging depositors.
Judge Nnamdi Dimgba issued a statement on Thursday sentencing a lawsuit filed by businessman Rupert Irikefe last year against the Central Bank of Nigeria (CBN), the Federation Attorney General and the Bank. Zenit, challenging the decision to impose the N50 stamp duty on depositors.
Under the CBN directive, Nigerian banks charged A $ 50 on transactions over AU $ 1,000, which was perceived by depositors as exploitation. Judge Dimgba ordered CBN and all banks to immediately cease further collection of stamp duties from Nigerians, as the Stamp Duty Act does not provide for such taxes.
The judge stated: “There was no clear provision in the Stamp Duty Act or any other law that would authorize withholding or impose any obligation to deduct and transfer 50 N as stamp duty on OTC deposits or electronic money transfers in the amount of N 1000 and therefore , canceled the same.“Conduct of the 1st and 2nd Defendants in continuing to collect, directly tax, receive and / or write off, deduct or transfer the aforementioned amount of 50 AD. as a stamp duty on OTC deposits or electronic money transfers from N1,000 or more from the account of the plaintiff living with the 2nd defendant, is unfair by law, disrespectful and disrespectful to the laws of the higher courts of competent jurisdiction, subject to conviction, invalid ” , He said. The court awarded Irikefe 50,000,000 N 50,000,000 in compensation for the inconvenience and pain caused by the unlawful and arbitrary imposition of stamp duty N 50 on his account. Judge Dimgba reprimanded Bank Zenith for its actions, since in 2014 the Court of Appeal ruled in favor of depositors in a similar case. Judge Dimgba said the Court of Appeal should have served as the basis for the bank to reject CBN’s N50 stamp duty directive.