The Federal government of has expressed readiness to provide support to states in a bid to recover their backlog of Stamp Duty revenues.
Attorney-General of the Federation and Minister of Justice, Mr. Abubakar Malami, made the pledge, calling for the support and cooperation of the attorney-generals of the 36 states of the Federation and the Joint Tax Board on the proposed audit and recovery of backlog of stamp duties from 15th January 15, 2016 to June 30, 2020.
Malami’s pledge was contained in a statement on Tuesday by Dr. Umar Jibrilu Gwandu, Special Assistant on Media and Public Relations, Office of the Attorney-General of the Federation and Minister of Justice.
According to the statement Malami made the pledge at the virtual meeting with the states attorney-generals and the Chairman, Federal Inland Revenue and the Members of the Joint Task Board held on August 11, 2020.
The minister reportedly cited Section 111 of the Stamp Duty Act, which provides 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.”
Malami noted that it is paramount 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.
It the Federal government had set up an Inter-Ministerial Committee on the Audit and Recovery of backlogs of stamp duties. The Committee, Chaired by the Office Attorney-General of the Federation and Minister of Justice, was inaugurated by the Secretary to the Government of the Federation, Mr. Boss Mustapha on June 30, 2020.
Members 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.
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 defines the responsibilities for the administration of Stamp Duties in Nigeria and jurisdiction of participating taxing authorizes, as well as explaines that the Federal Inland Revenue is the competent tax authority to administer, assess, collect, and account for stamp duty in the country.