The Federal Inland Revenue Service (FIRS) made a clarification on its plan to impose a stamp duty cost on tenancy.
FIRS executive chairman, Muhammad Nami spoke at a webinar organised by OTISVIP, stated the six percent stamp duty cost on tenancy beforehand announced will solely apply to tenancy and lease agreements which might be above 21 years.
Based on him, tenancy and lease agreements lower than seven years would carry 0.78 percent stamp duty whereas agreements between seven and 21 years will carry a 3 percent cost.
Nami urged Nigerians to settle for the truth that the nation can no longer rely solely on crude revenue to fund the finances, therefore the necessity 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.”