Senate mandates committee to open inquest on unremitted stamp duty fund

Senate mandates committee to open inquest on unremitted stamp duty fund

The Senate on Tuesday, December 10; at the plenary mandated its Committee on Finance to investigate the issue of more than N20 trillion unremitted Stamp Duties fund; due to the Federal Government from banks and other financial institutions.

The Senate said that the non-remittance from the financial institutions was through the Nigeria Inter-Bank Settlement Systems (NIBSS); a subsidiary of Central Bank of Nigeria (CBN) from 2013 to 2016.

It also noted that the CBN had officially directed the banks to collect the stamp duty on behalf of Federal Government from 2016 to date.

The motion was sponsored by Sen. Akinyelure Ayo (Ondo Central) and co-sponsored by 41 other senators.

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Akinyelure, while presenting the motion, noted that the Federal Government had projected revenue of over N25 trillion annually; as payment of stamp duties from the financial services industry since 2016.

He said that the CBN had in January 2016; issued a circular directing all banks and other financial institutions to charge stamp of N50 duties on lodgment into current accounts with a value of N1, 000 and above.

“Concerned that since the issuance of the said directives by the president; the CBN and NIBSS deliberately failed to cooperate and comply with the directives for the realisation of revenue; due from stamp duties collected for 2013 to 2016 years and subsequently over N5 trillion minimum revenue due to be collected annually.

“The revenue is to be shared among the states of the Federation for infrastructural and economic development,” he said.

He raised concern that since the issuing of CBN circulars to all money deposit banks in 2016 for collection of N50 stamp duties; accountability in the collection by banks had not been transparent; and no report by CBN or its NIBSS to the Nigerian public on the actual revenue generated.

In his remark, President of Senate, Ahmad Lawan said his engagement with the CBN and the Ministry of Finance; had indicated that those supposed to collect the duty were not up and doing.

He said that with the passing of the Finance Bill by the Senate; the collection of stamp duty would improve significantly beginning from January.

He said that the stamp duty; if properly collected would be enough to fund the 2020 budget implementation.

Lawan said the National Assembly, via its committees; would monitor the collections and ensure that those responsible for the collections do not abuse the process.

About The Author

Mayowa Oladeji

A writer with a keen interest in human stories and topical issues around the world.

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