Nigeria: Authority of states to collect stamp taxes (duties)

Longstanding issue of the appropriate authority to collect stamp taxes on transactions involving persons and individuals resident in the states

Longstanding issue of the appropriate authority to collect stamp taxes

The attorney generals of the 36 states in Nigeria have filed a suit against the Attorney General of the Federation (AGF) at the Supreme Court in Abuja to determine the authority of states to collect stamp taxes (duties) on instruments executed between persons or individuals within their respective states under the stamp taxes law.

The key issues presented to the court for determination include:

  • Whether the AGF is the sole authority empowered to collect and administer stamp taxes on all transactions involving individuals / persons within the respective states under the stamp taxes law
  • Whether the AGF is entitled to collect, administer, or keep the proceeds of any collection of stamp taxes paid on transactions involving individuals / persons within the respective states without any agreement with, reference to, or disclosures made to, the states
  • Whether the states are entitled to the entire sum of stamp taxes collected by the AGF on individual persons transactions under the law
  • Whether the states are entitled to 85% of electronic money transfer levies collected on electronic transfers made in their respective states

The states sought relief on all issues submitted before the court for determination.

KPMG observation

A determination by the court may clarify the longstanding issue of the appropriate authority to collect stamp taxes on transactions involving persons and individuals resident in the states. 
 

Read a September 2021 report [PDF 208 KB] prepared by the KPMG member firm in Nigeria

 

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