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.
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
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.