In a bid to enhance revenue generation and bolster fiscal performance, the Federal Government has mandated commercial banks to implement a 0.375% stamp duty charge on all mortgage-backed loans and bonds.

This move signifies an expansion of the scope of stamp duty charges, now encompassing foreign transactions and loans, in addition to regular bank transfers.

The new directive was included in a message sent to customers by banks as directed by the Federal Inland Revenue Service emphasizing that the new rule does not affect previously approved loans.

Recall that in January this year, banks were also directed to deduct stamp duty on old foreign transactions between January 2021 and December 2023 by January 31, 2024.

Before the directive, the electronic money transfer levy was only applicable to accounts receiving electronic deposits of N10,000 or above or its equivalent. CONTINUE READING