Revenue Generation: FG To Help States Recover Backlog Stamp Duty From 2016-2020

As a means of further generating revenue for the country, the Federal Government, on Tuesday, said it would “support any states of the country, as may be required, in a bid to recover the backlog of Stamp Duty.”

Stamp Duty is a generic term for tax.

The Attorney-General of the Federation and Minister of Justice, Abubakar Malami, SAN, disclosed this during a virtual meeting with the states Attorneys-General, Chairman, Federal Inland Revenue and the members of the Joint Task Board on Tuesday, according to a statement by his Special Assistant on Media and Public Relations, Dr Umar Jibrilu Gwandu.

Malami urged the Attorneys-General of the thirty-six states in country and the Joint Tax Board to support the proposed audit and recovery of backlog of stamp duties from 15th January, 2016 to 30th June, 2020.

The AGF maintained that it was within the provisions of the constitution of the country for states to make such recoveries.

He added that ” it is permanent to note that by Paragraph 7, Item B of Part II of the Second Schedule to the Constitution and Section 4(2) of Stamp Duty Act, the State Governments are empowered to collect stamp duties in respect of transactions between individuals residing in their respective States”.

He went on to buttress the issues by citing Section 111 of the Stamp Duty Act which partly states that “ all duties, fines, penalties and debts due to the Government of the Federation imposed by this Act shall be recoverable in a summarily manner in the name of the Attorney General of the Federation or the State”.

Recall that the federal government had on June 30, 2020, established an Inter-Ministerial Committee on the Audit and Recovery of backlogs of stamp duties, with Malami as the Chairman.

The statement further reads:

“The Stamp Duties was originally captured in the Stamp Duties Act 1939 (Ordinance 41 of the 1939) and amended by numerous Acts and various resolutions and contained in the Laws of the Federation of Nigeria 2004.

“Recently, the Finance Act 2019 amendment to the Stamp Duties Act, particularly Section 52-56 clearly defined the responsibilities for the administration of Stamp Duties in Nigeria and jurisdiction of participating taxing authorizes, as well as explained that the Federal Inland Revenue is the competent tax authority to administer, assess, collect, and account for stamp duty in the country

“Membership of the Committee were drawn from the Federal Ministry of Finance, Budget and National Planning, Office of the Accountant General of the Federation, Secretary to the Government of the Federation, Revenue Mobilization, Allocation and Fiscal Commission, Nigerian Financial Intelligence Unit, Central Bank of Nigeria and Federal Inland Revenue Serves”.