Fed Govt eyes N66.1b from stamp duty, says CBN

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The Federal Government is targeting an additional N66.1 billion revenue this year from  stamp duty of N50 on bank customers for money received into their accounts.

The Central Bank of Nigeria (CBN) Governor  Godwin Emefiele, who spoke with reporters on the sideline of the Monetary Policy Meeting yesteray in Abuja, said the government is exploring opportunities to shore up revenue shortfall to Federation Account.

The 2016, 2017, 2018 Medium Term Expenditure Framework and Fiscal Strategy Paper as captured in the 2016 Budget under the non-oil revenue section, shows that the Federal Government projects to make N66.1billion from stamp duty alone.

It also projects that the revenue would grow to N71.8 billion in 2017 and to N78.5billion in 2018.

Emefiele said the Federal Government was looking inwards at the banking sector as part of efforts to boost its revenue base through taxes and rates.

There are currently various options the government and the economic team are looking at as ways to boost non-oil revenues and stamp duty is one option.

He said: “The numbers are there in the budget about what we expect to generate from stamp duties in 2016.

“We will try as much as possible, working with the banks to ensure that all transactions are captured in a way that ensures that for transactions above N1,000 and above, each of those transactions get debited for N50.

“We have not dimensioned it yet; I believe in due course, Nigerians will begin to know what this will translate into.

“But we believe that it will help the efforts of the government in improving its revenue.’’

The News Agency of Nigeria (NAN) recalls that the CBN had recently reintroduced the policy, as contained in the Stamp Duty Act, 2004.

The banks have since been directed to collect the duty from their customers and remit it to the Nigerian Postal Service Account at the CBN.

The charge is on all transactions by a bank or financial institution in respect of deposits and transfers worth N1,000 and above.

However, it doesn’t apply to ‘self-to-self-transactions’ whether intra or interbank and it also exempts transfers and withdrawals involving salary accounts and savings accounts, used by majority of low income earners.

Emefiele said looking at the dwindling revenue from oil, the government was now determined to enforce all financial laws and regulations in order to shore up revenue and prevent leakages.

The CBN governor noted that the economy is improving as a result of the 41 items CBN banned from receiving foreign exchange in the Nigerian foreign exchange market.

source: http://thenationonlineng.net/fed-govt-eyes-n66-1b-from-stamp-duty-says-cbn/

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