Lagos Assembly Passes Regulation On Stamp Duty

The Lagos State House of Assembly on Tuesday. July 19, 2016 passed a regulation to claim 30 percent revenue accrueable to Nigeria Postal Service (NPS) through N50.00 stamp duty deduction by commercial banks.
The Federal Government had directed the Central Bank of Nigeria (CBN) since January this year to impose stamp duty of N50 on bank customers for money received into their accounts.
Bank customers would henceforth pay N50 stamp duty for money received into their accounts via electronic transfer, cash and cheques.
The order was contained in a circular to all Deposit Money Banks and Other Financial institutions titled, Collection and Remittance of statutory charges on receipts of Nigeria Postal Service under the Stamp Duties Act.
In a report titled, “Stamp Duties Recovery and Collection Regulation, 2016,” which was read at the Committee of the whole by a member of the House, Hon. Kazeem Alimi, it was stated that one of the objectives of the regulation is to “empower the state government to access its entitlement at least 30 percent monthly deduction by Nigeria Postal Service.”
Alimi, who read the report on behalf of the House committee Chairman on Finance, Hon. Oluyinka Ogundimu, added that the report was in line with the executive briefing, which members had with the state Attorney-General and commissioner for Justice, Adeniji Kazeem.
He maintained that the state government needs a legal backing from the House to claim all the revenue from January till date and for subsequent deductions.
While supporting the recommendations of the report as presented by Alimi, Rotimi Olowo said, “we must use all the legal means as required by Stamp Duties Act to get the deductions. That means we have access to collect the money collected from January to July. The regulation is apt.
“If we get the deduction, it represents 15 percent of year 2016 budget,” Olowo concluded.
Also speaking on the report, the Majority Leader of the House, Hon. Sanai Agunbiade explained that the legal backing as required by the executive was not to contemplate legal tussle but rather a need to do our responsibility as legislators in the state.

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