States sue FG over sharing of stamp duties

10 Sep States sue FG over sharing of stamp duties

Arguing that they are the sole authority to collect stamp duties, Attorneys-General of the 36 states have sued the Attorney-General of the Federation (AGF), Abubakar Malami, over alleged failure of the Federal Government to remit funds generated from stamp duties into states’ account.

Hot on the heels of a conflict between some states and the Federal Inland Revenue Service (FIRS) over the collection of VAT, the suit is seen by some people as a subtle way of enforcing federalism.

The 36 states have gone before the Supreme Court to ask for, among others, an order compelling the Federal Government to account for funds collected by way of stamp duties on individual persons’ transactions in states from 2015.

The states want the apex court to order the central government to refund N176,067,400,000, being “the ascertained and admitted collected stamp duties on individual persons’ transactions within the respective states for the period of 2015-2020” in addition to what would be ascertained later
The states equally want the Supreme Court to restrain the Federal Government or its agents from appointing anyone to collect stamp duties on individual persons’ transactions within the respective states. These form part of the reliefs sought in a suit marked: SC/CV/690/2021 filed before the Supreme Court.

The states are of the view that by virtue of the mandatory provisions of Section 4(2) of the Stamp Duties Act, they (the states) are the sole authorities empowered to administer and collect stamp duties on all transactions involving individuals/persons within their respective states.
The plaintiffs, while raising some questions for the court’s determination, are praying for the following reliefs: A declaration that the plaintiffs are the sole authorities entitled to administer and collect stamp duties on all transactions involving individuals within their respective states; a declaration that the defendant is not entitled to collect, administer, or keep the proceeds of any stamp duties on transactions involving individuals within the respective states of the plaintiffs or in any manner interfere with the plaintiff’s right and authority in the administering the provision of Section 4(2) of the Stamp Duties Act Cap. S8 Laws of the Federation of Nigeria.

A declaration that the plaintiffs are entitled to 85 per cent of all stamp duties collected on electronic money transfer levy, electronic receipts, or electronic transfer for money deposited in deposit money banks and financial institutions, on any type of account to be accounted for and expressed to be received by the person to whom the transferor deposit is made in the plaintiffs’ respective states.

An order of injunction directing the defendant to account for and pay back all monies and collected by way of stamp duties on individual persons’ transactions within the respective states of the Plaintiffs from the period 2015-2020, and thereafter, till the time of the judgment.

The suit, filed on August 24 this year, is yet to be slated for hearing by the court currently on its yearly vacation.

The same 36 states had on June 16 this year, filed a separate suit before the Supreme Court, marked: SCN/CV/393/2021 in which they want the court to among others, compel the Federal Government to account for the about N2.28 trillion (both in cash and assets) so far recovered from looters since 2015.