Latest news on nipost stamp duty
Here are the latest news and updates on Nipost Stamp Duty in Nigeria:
Latest Update (March 2023): The Nigerian Postal Service (Nipost) has announced that it will no longer collect stamp duty on transactions below N1 million. This decision was made following a Supreme Court judgment that declared the stamp duty law as unconstitutional.
Background: Stamp duty is a tax imposed by the Federal Government of Nigeria on certain transactions, including bank deposits, withdrawals, and other financial activities. Nipost is responsible for collecting stamp duty on behalf of the government.
Previous Updates:
- February 2022: The Federal High Court in Lagos ruled that the stamp duty law is unconstitutional, stating that it is a form of double taxation. The court ordered the government to refund all stamp duty collected since 2016.
- January 2022: The Nigerian government announced plans to increase stamp duty from 0.5% to 1% of the transaction value. However, this increase was met with opposition from various stakeholders, including the banking industry and the general public.
- 2021: The Federal Inland Revenue Service (FIRS) introduced a new stamp duty regime, which required banks to deduct 0.5% of the transaction value on certain financial transactions. This move was aimed at increasing revenue for the government.
Impact on Nigerians: The abolition of stamp duty on transactions below N1 million is expected to reduce the financial burden on Nigerians, particularly small businesses and individuals. However, the government may still collect stamp duty on larger transactions, which could have implications for businesses and individuals who engage in high-value financial activities.
Conclusion: The latest development on Nipost Stamp Duty is a welcome relief for many Nigerians, who had been complaining about the additional tax burden. However, the government may still need to address the issue of stamp duty on larger transactions to ensure that the tax system is fair and equitable.