Press "Enter" to skip to content

Court Declines to Stop CBN from Disbursing Stamp Duty Deposits

Court Declines to Stop CBN from Disbursing Stamp Duty Deposits

The Federal High Court in Abuja has rejected a request to prevent the Central Bank of Nigeria (CBN) from distributing funds deposited into the CBN NIPOST stamp duty collection account by commercial banks.

Justice Inyang Ekwo turned down the plea from Kasmal International Services, which asserted its stake in the N3.8 trillion deposited in the Stamp Duty Collection Account.

The firm’s legal team argued that it was entitled to a portion of the funds based on an agreement with the Nigerian Postal Service (NIPOST) to collect a levy on bank receipts for electronic transfers and teller deposits above N1,000.

According to the lawyer representing Kasmal International Services, the company had only received partial payment, leading to concerns about potential losses if disbursements were made without considering their share.

The court ordered the plaintiff to serve the defendants with all relevant documents within two days and directed the CBN to appear in court to explain why the plaintiff’s request should not be granted.

The matter was adjourned to April 16 for further hearing.

Background:

Stamp duty is a tax applied to various financial transactions. In 2023, former CBN governor Godwin Emefiele disclosed that the government had collected N370.686 billion in stamp duty revenue over six years, from 2016 to 2022.

NIPOST was designated as the agency responsible for collecting stamp duties in Nigeria in 2021.

The lawsuit seeks to clarify the company’s entitlement to a portion of the stamp duty funds as per its agreement with relevant agencies.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *