The Federal Inland Revenue Service (FIRS) has made clarifications on its plan to impose a stamp duty charge on the tenancy agreements in Nigeria.
The Executive Chairman of FIRS, Mr. Muhammad Nami, who spoke at a webinar organized by OTISVIP, a private members’ club for professional African millennials, said the six percent stamp duty charge on tenancy previously announced will only apply to the tenancy and lease agreements that are above 21 years.
The FIRS Chairman explained that the tenancy and lease agreements less than seven years would carry 0.78 percent stamp duty while agreements between seven and 21 years will carry a three percent charge.
According to Mr. Nami, Nigeria can no longer rely solely on its revenue from crude oil to fund the budget which means the country would need to embrace taxation as the new normal of national fiscal policy. He urged Nigerians to accept this new development.
A statement released by Abdullahi Ismaila Ahmad, the director of FIRS communications and liaison department partly read; “While all panelists agreed on the need for taxation to complement government’s revenue flow from natural resources, a lively debate ensued on the timing of the stamp duty campaign and the public debate surrounding the application of tax revenue in the nation-building processes, especially in building public infrastructure.
“The panelists stressed the need for prudent management of tax revenue even as they enjoined Nigerians to embrace the fact that the tax net needs to get wider to accommodate more citizens for holistic national development.”