The Lagos State Government has dragged the Federal Government to Supreme Court to challenge the collection of N50 stamp duty on N1,000 transaction conducted by customers in all commercial banks operating in Lagos State.
In an appeal filed before the supreme court by its Attorney General and Commissioner for Justice, Mr. Adeniji Kazeem, Lagos State is maintaining that it ought to be the one collecting the N50 stamp duty rather than the Federal Government.
Kazeem argued that by virtue of Section 4(1) of the Stamp Duties Act, Cap S8 Laws of the Federation of Nigeria, 2004, the Federal Government had no right or power to collect and keep money paid as stamp duties on behalf of federating units.
Lagos State urged the Supreme Court to declare as illegal the instruction given to the Central Bank of Nigeria to deduct and remit to the Federal Government N50 stamp duty collected on every N1,000 bank transaction conducted within the Lagos State territory.
The state wants the apex court to make an order compelling the Federal Government to remit to it all such monies it had so far collected as stamp duty on bank transactions conducted within the Lagos State territory.
Kazeem argued that Section 163(b) of the Constitution gave the state an entitlement “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.”
While urging the Supreme Court to interprete the provisions of the Stamp Duties Act, 2004, he expressed the belief that Section 4(2) of the Act made the collection of the N50 stamp duty the exclusive preserve of the state.
He urged the Supreme Court to declare that “the action of the Federal Government in collecting stamp duties within the Lagos territory without remittance is illegal.”