The Federal Inland Revenue Service (FIRS) has said it has remitted N66bn stamp duty revenue into the federation account between January and May 2020.
The FIRS Executive Chairman, Mr Muhammad Nami disclosed this on Tuesday in Abuja during the inauguration of the inter-ministerial committee on the audit & recovery of stamp duties and launch of FIRS adhesive stamp.
Giving a breakdown of further collections and remittances, he said the total Stamp Duty collection for Jan – Dec 2019 was N18 billion.
He also stated that the total collection by FIRS from January 2020 to June 29th 2020 is as follows: “Stamp duties remitted by Money Deposit Banks (MDBs) was N20.00bn, stamp duties revenue from stamping of instruments was 7.90bn, amount hitherto warehoused with CBN now remitted to Federation Account was N39.00bn and the total stamp duty remitted into Federation Account from January, 2020 – May, 2020 was N66.00bn.”
He attributed the significant leap of stamp duty to “the dynamism triggered by Finance Act 2019, sums warehoused by the CBN in respect of prior years, deployment of technology and stakeholders collaboration.”
Stamp Duty chargeable transactions include: Power of Attorney (PoA), Deed of Assignment, Certificates of Occupancy (C of O), Sales Agreement, Proxy forms, Appointment of Receiver, Legal Mortgage or Debentures’ Tenancy or Lease Agreements, Memorandum of Understanding (MoU), Insurance Policies, Joint Venture Agreements (JVA), Contract Agreements, Guarantor’s form, Vending Agreement, Ordinary Agreements Receipts, Promissory Notes, Charter-Party and Contract Notes
Mr. Nami also indicated that the “collection performance of Stamp Duties hitherto witnessed is a tip of the iceberg compared to its potentials.”
He noted that the amendment and effective implementation of the Stamp Duty Act, simplified administrative processes plus the audit and recovery exercise will raise the bar significantly.
He, however, noted that the dependence on postage stamps for denoting Stamp Duties is one of the factors accounting for low collection performance in the past.
He thus noted that the introduction of the FIRS Stamp Duties, Adhesive Stamp will, among other things plug the revenue sink-hole; enable proper accountability and transparency; simplify administration of Stamp Duties; and reduce disputes.
He said the FIRS is prepared to reposition Stamp Duties as the next major revenue source for Nigeria.
Also speaking at the event, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said stamp duties can potentially yield up to N1trn revenue annually if harnessed.
She noted that Buhari led administration is putting in place innovative processes and efficient tax administration bearing in mind the dwindling revenue trend.
She noted that given the global economic crisis and the impact on revenues, the need to grow tax revenue is critical adding that stamp duties open up a stream of untapped revenue opportunity.