The Senate at its plenary session of Tuesday, 8 May 2018, passed the Stamp Duties Act, 2004, (Amendment) Bill, 2018 (HB 889). The Bill seeks to address ambiguities in the Principal Act and to ensure that the provisions of the Principal Act reflect current realities in Nigeria. The Act makes provisions for the payment of taxes and levies to the government on financial transactions, documents and legal instruments.
Presenting the report on the Bill, the Deputy Chairman of the Committee on Finance, Sen. Umaru Kurfi (APC; Katsina) stated that the Committee had conducted an interactive session on Tuesday, 30 January 2018 with various stakeholders such as the Post Master General of the Federation, Nigeria Postal Service (NIPOST), Executive Chairman of the Federal Inland Revenue Service (FIRS) and the Ministry of Finance on the proposed amendments.
Following the interactive session, Sen. Kurfi mentioned that the Committee had observed among others that:
- The Stamp Duties Act which was enacted in 1939 is obsolete;
- The Bill expands the definition of “Stamp” to include electronically generated stamps or stamps embossed through a point of sale (POS) machine or an adhesive postage stamp with face value or specified value;
- The Bill includes receipts issued in respect of deposits made into a bank as instruments for which stamp duty can be imposed; and
- The Bill provides an enabling environment for NIPOST to measure up with postal administration to meet international best practices.
Sen. Kurfi explained that the Bill, if passed, would boost revenue generation leading to an improved economic growth. He stated that the Committee retained all 8 Clauses passed by the House of Representatives. According to him, the Stamp Duties Act (Amendment) Bill, 2018 was passed by the House of Representatives on 30 November 2017 and transmitted to the Senate for concurrence. The Bill was then referred to the Committee on Finance for further legislative scrutiny on Thursday, 18 January 2018 to aid the Senate arrive at a decision on the passage of the Bill.
Click here to view the full report of the Committee
