The Central Bank of Nigeria, CBN, has reportedly directed all banks, processors and switches to start charging N50 Stamp Duty on individual transactions.
The new CBN directive may see bank customers pay more for Point of Sale (PoS) transactions, according to a report filed by The Nation.
The central bank announced the new directive via a circular to banks, processors and switches, released on Tuesday, September 17, titled “Review of Process for Merchants Collections on Electronic Transactions”.
According to the new policy, Stamp Duties Payment will be processed on individual transactions that occur on PoS, rather than previous plans where charges occurred on aggregate transactions, the newspaper notes.
Signed by CBN Director, Payments System Management Department, Sam Okojere, the circular authorised banks to unbundle merchant settlement amounts and charge applicable taxes and duties on individual transactions as stipulated by regulators.
The Merchant Service Charge (MSC) was also reviewed downward from 0.75% (capped at N1, 200) to 0.50% (capped at N1, 000).
MSC is the fee merchants such as supermarkets pay for payment customers make to them through electronic payment channels such as Point of Sales (PoS).
The CBN directive takes effect from Tuesday, September 17.
The CBN and Nigeria Interbank Settlement System (NIBSS) are working closely, including setting remittance processes that ensure the stamp duty charges for PoS is collected.
The Nation quoted the NIBSS as stating in a report titled Returns on Stamp Duty Collection for Merchant Transactions that the new stamp duty payment plan is in line with the provision of the Stamp Duties Act and Federal Government Financial Regulation 2009.
The payment agency reportedly added that the policy was put in place to ensure strict adherence to the CBN guideline communication on the subject, collection and remittance of statutory charges on receipts to Nigeria Postal Service under the Stamp Duties Act dated 15th January 2016.
According to the procedural processing guide for stamp duty Charges for PoS, web merchant and all deposit money banks (DMBs) are reportedly expected to download daily PoS/Web settlement report from their respective processors settlement file transfer portal.
Also, the PoS and web settlement processing officer shall ensure that stamp duties are correctly processed daily by downloading daily PoS/web transactions valued at N1,000 and above, noting the count of these transactions; multiply the count of these transactions by N50 and pass the corresponding debit/charge to the respective merchant accounts.