The Federal Government (FG) has mandated Deposit Money Banks to commence the deduction of a 0.375 per cent stamp duty charge on all mortgaged-backed loans and bonds.
his directive, conveyed through a message from banks to customers as instructed by the Federal Inland Revenue Service, signifies an expansion in the scope of stamp duty charges to include foreign transactions and loans, in addition to regular bank transfers.
This move aims to bolster fiscal performance, following a previous directive in January for banks to deduct stamp duty on old foreign transactions between January 2021 and December 2023 by January 31, 2024.
Access Bank, in an electronic communication to its customers, outlined the implementation of the stamp duty charge on transactions requiring duty payments, such as contracts and legal mortgages.
The charge, set at 0.375 per cent, will be applicable to loans supported by legal mortgages, shares, debentures, or bonds.
While previously approved loans remain unaffected and should be repaid as per agreed terms and conditions, the bank assured its commitment to providing exceptional service amidst these changes.
