The Federal Government has directed deposit money banks (DMBs) in the country to immediately begin the deduction 0.375% Stamp Duty on all loans disbursed by them and remit the deductions to it.
According to a message by the DMBs to their customers with outstanding loans, the deduction is specifically to apply to only the principal loan amount.
In the message which started circulating on Wednesday to bank customers with loans, one of the banks wrote:
“Dear Valued Customer,
“We write to inform you that the Federal Government of Nigeria has directed that all banks remit stamp duty on all loans.
“In line with this directive, 0.375% on every principal loan amount disbursed will be debited and remitted to the Federal Government of Nigeria.
“However, all existing approved loans remain unchanged and are to be fully repaid in line with the terms and conditions. We are committed to offering you exceptional service every step of the way”, the bank added
The latest directive is coming after the government recently expanded the net on transactions covered by the stamp duty charges from regular bank transfers to foreign transactions.
It would be recalled that the DMBs banks were also in January this year directed to deduct stamp duty charges on old foreign transactions between January 2021 and December 2023 effective from January 31 this year.
Before then, the electronic money transfer levy (EMTL) was only applicable to accounts receiving electronic deposits of N10,000 and above or its equivalent.
The Stamp Duty is an indirect tax in Nigeria governed by the Stamp Duties Act (SDA), CAP S8 LFN 2004 (as amended) and it is charged for a stamp or seal applied on a written or electronic document which if executed, makes it a legal document and will be admissible in any court of law.
