Following the economical crisis and level of hardship in the country, the Federal Government has urged Deposit Money Banks to start the decrease of 0.375 percent in stamp duty charge on all mortgaged-backed loans and bonds.
This was contained in a message sent to customers by banks as declared by the Federal Inland Revenue Service.
Mortgage-backed loans are loans extended by financial institutions to individuals or entities to buy a home and repay the loan amount over time with interest while bonds are debt securities issued by governments, municipalities, corporations, or other entities to raise capital.
The regular bank transfers, as part of efforts by the tax authority to enhance fiscal performance, it indicted that the government is expanding the scope of stamp duty charges to include foreign transactions and loan.
Recall in January that the banks were also directed to decrease stamp duty on old foreign transactions between January 2021 and December 2023 by January 31, 2024.
Before that, the electronic money transfer levy was only applicable to accounts receiving electronic deposits of N10,000 and above or its equivalent.
In an electronic message sent to their customers on Thursday notifying them of the deduction, Access Bank wrote, “We would like to inform you that the Federal Inland Revenue Service has directed all Nigerian banks to implement stamp duty on certain transactions that require duty payments such as contracts and legal mortgages.
“In compliance with this directive, we have taken measures to streamline the process to make transactions more convenient for you.
“To this end, a stamp duty charge of 0.375 per cent will be applied to loans backed by legal mortgages, shares, debentures, or bonds. The charge will be applied to the value of the Legal Mortgage, Shares, Debentures or Bonds and remitted to the Federal Inland Revenue Services.”
“However, all previously approved loans will remain unchanged and should be repaid in full as per the agreed terms and conditions. We are committed to providing you with exceptional service,” the notice stated.
