The Federal Inland Revenue Service (FIRS) has explained its decision to hit the tenancy with an imposition of a stamp duty.
The six per cent stamp duty fee on tenancy already announced would only be applicable to tenancy agreements for 21 years, according to the Chairman of FIRS, Mohammed Nami, who spoke at an OTISVIP webinar.
According to him, rent and lease agreements under seven would be charged 0.78% stamp and 7–21 year agreements would be charged 3%.
It is therefore important to follow fiscal policies as the new norm in national fiscal policy,
that Nami urges Nigerians to embrace the fact that the country can not depend solely on raw revenues to fund the budget.
A statement released by director of FIRS Communications and Liaison Department Director Abdullahi Ismaila Ahmad,
“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.”