One-Year Rent Agreement Will Attract Only 0.78% Stamp Duty – FIRS

The Federal Inland Revenue Service {FIRS} has made clarifications of its proposed plans to impose a stamp duty charge on tenancy. FIRS Boss Muhammad Nami on Stamp Duty charge

The Federal Inland Revenue executive chairman, Muhammad Nami had made the clarification during a webinar organised by the OTISVIP, he said the 6% stamp duty charge which was previously announced only applied to tenancy and lease agreements that were 21 years and above.

According to FIRS boss Mr Nami, tenancy and lease agreements less than seven years would only carry 0.78 per cent stamp duty while 3 per cent charge would apply to agreements between 7 – 21 years.
Nami urged Nigerians to accept the fact that the country can no longer rely solely on crude revenue to fund the budget, hence the need to embrace taxation as the new normal of national fiscal policy.

A statement released by Abdullahi Ismaila Ahmad, director of FIRS communications and liaison department partly read;

“While all panellists 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 panellists 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.”

Photo Credit: Getty

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