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Observe Rule of Law, comply with Appeal Court ruling, NECA tells CBN

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Tension is gradually building up between the leadership of the Nigeria Employers’ Consultative Association (NECA) and the Central Bank of Nigeria (CBN) over abuse of Appellate Court ruling on the stoppage of collecting N50 Stamp Duty on every deposit into current accounts above N1,000.

Late last year, there was an Appeal Court ruling which declared the imposition of N50 Stamp Duty illegal and stopped the regime, but indications are rife that the collection is still going on in banks, thus compelling NECA to raise alarm on contempt of court.

In a statement, NECA said banks have failed to obey the court ruling in a case between Kasmal International Services Limited and Access Bank and 23 others.

CBN had directed the banks to commence the deductions, which did not only affect corporate bodies but all Nigerians, including the very vulnerable ones.

But the Director-General of NECA, Mr. Segun Oshinowo, said organised businesses in the country had opposed attempts by the Nigeria Postal Service to compel companies to affix N50 postal stamp on all receipts, invoices and documents evidencing transactions of N1,000 and above.

Besides, the association had also kicked against the apex bank’s directive to the DMBs based on its illegality and in the light of pending litigation in the courts on the matter.

NECA in the statement averred that “The Nigeria Employers’ Consultative Association has expressed grave concern over the failure of the CBN to reverse its earlier directive to all Deposit Money Banks to halt the charging of N50 per eligible transaction in accordance with the assumed provisions of the Stamp Duties Act and the Federal Government Financial Regulations, 2009.

“The CBN is hereby advised to do the needful without delay by directing cessation of further deductions and commence the refund of all accrued deductions in the past to bank customers.”

“NECA urges the Buhari administration to restrain its operatives from pursuing policies that will increase the burden on the citizenry, both corporate and individuals. It affirmed that stamp duty’s applicability is limited to purchases involving large sums like a house purchase or importation of goods as against the position of applying N50 postage stamp to all receipts given by any bank (or financial institution) in acknowledgment of services rendered in respect of electronic transfers and teller deposits,” NECA summed.


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