Lagos sues Federal Government over N50 stamp duty

The Lagos State Government has instituted a suit at the Supreme Court challenging the collection of N50 stamp duty by the Federal Government on every N1,000 transaction within its territory without remittance to it.

In the appeal filed by its Attorney-General and Commissioner for Justice, Mr. Adeniji Kazeem, the state government is contending that it ought to be the one collecting the N50 stamp duty rather than the Federal Government.

In an originating summons brought pursuant to Section 232 of the 1999 Constitution, the Lagos State Government is praying the apex court to determine, among other things, whether the Federal Government has any power to collect and keep money paid as stamp duties on behalf of federating units pursuant to Section 4 (1) of the Stamp Duties Act, Cap S8 Laws of the Federation of Nigeria, 2004.

Besides asking the court to declare the action of the Federal Government in collecting stamp duties within its territory without remittance as illegal, the plaintiff wants the court to make an order compelling the Federal Government to remit all such monies it had already collected to it.

The Lagos State Government’s position is, that while the Federal Government is the only competent authority to impose, charge and collect stamp duties between a company and an individual, group or body of individuals, Lagos State Government by virtue of Section 163 (b) of the Constitution is entitled to the sum equal to the proportion of the net proceeds of the sum collected as duties on such transaction within the territory of Lagos State.