Despite CBN Directive, Petrol Stations, Malls Still Charge N50 Stamp Duty
Despite the repeated clarification and caution from the Central Bank of Nigeria (CBN) and the Federal Competition and Consumer Protection Commission (FCCPC), investigation by Daily Trust reveals that merchants have continued to charge their customers N50 stamp duty.
Daily Trust reports that the Federal Government recently stopped the additional N50 charge currently being imposed on transactions carried out through Point of Sales (POS) Terminal.
FCCPC in a recent circular released on POS transactions’ charges clarified that instruction by the CBN is to be borne by businesses.
As such, passing it on consumers is counterproductive, burdensome and inconsistent with the underlying cashless policy of the Central Bank of Nigeria.
Also explaining the new CBN financial guide, Musa Jimoh, a director in CBN’s payment system management department, said only businesses using the POS are to be deducted N50 per payment received through the machine and not customers.
“No single individual should pay N50 in addition to the cost of the good,” Jimoh said, adding that “Stamp duty is not to be paid by individuals that are consuming the goods and services of the merchant.
The merchants who are receiving the money are the ones who are supposed to pay.” However, when our correspondents went out to confirm complaints, it was observed that most petrol stations, airlines and malls in Lagos and Abuja were not complying with the directives.
Forte Oil filling station and Mobil filling station along Karu- Karshi road in Abuja were charging N50 stamp duty to customers who used their cards irrespective of the amount of purchase.
Mobil filling station along Ahmadu Bello way inward Gwarinpa and NIPCO filling station Lugbe and Shema Airport road Abuja were also observed charging N50 stamp duties from customers.
Similarly, Total Alapere 2 service station, MRS filling station on Ahmadu Bello, Victoria Island, Toppy petroleum in Ikorodu, Forte Oil along Ikotun-Idimu road, by subol bus stop, Petrocam fuel station along Liasu road, Egbe, Alimosho, and Petrocam Olokonla, Ajah on the lekki expressway were still charging their customers the N50 stamp duty.
When confronted, pump attendants and stations managers claim that the CBN or the FCCPC has not communicated them via a circular to discontinue the charge.
Some of them also said they have been directed to stop the charge on customers from February 1, 2020.
Many users of Opay have raised concerns that they operator has continued to charge N50 on transaction above N1,000 instead of N10,000 as directed by the circular. A customer, Isaac Fela who spoke to our reporter said some filling stations continued to charge N50 stamp duty and urged the relevant agencies to go after them with stiffer penalty.
Another customer Mr Ademola Kazeem said: “Some merchants had upgraded their POS machines to automatically charge N50 for transactions above N1,000 to avoid the occasional backlash that comes with seeking customers’ consents before adding the charge manually during POS payments.”
According to the new proposed finance bill, the N50 stamp duty charge would now be levied on electronic payments above N10,000 as against payment above N1,000. The finance bill is a plan by the Federal Government to revamp tax administration in the country by introducing various tax increments.
The new bill exempts bank transfers between two accounts owned by the same person or organization from stamp duty charges. The bill repeals a provision of the Stamp Duty Act 2014 which holds the threshold for receipts chargeable with stamp duty as N4 and above.
Stakeholders have argued that the increased limit would improve POS usage and prevent a total boycott of POS by small businesses/retailers. They also noted that the new limit might assist the government put a balance in its quest to make the economy cashless and improve tax revenue.
