Court Orders CBN to Pay N579 Billion Stamp Duty Arrears to Private Firm

Advertisements A Federal High Court in Abuja has ordered the Central Bank of Nigeria (CBN) to pay N579 billion to […]

Advertisements

A Federal High Court in Abuja has ordered the Central Bank of Nigeria (CBN) to pay N579 billion to Kasmal International Services, a private firm, for its role in collecting stamp duty fees on behalf of the Nigerian Postal Service (NIPOST) between January 1, 2015, and January 31, 2020.

Kasmal was contracted by NIPOST to collect a N50 stamp duty on electronic transfers and teller deposits of N1,000 and above. According to the agreement, Kasmal was to receive N7.5 for every N50 deduction made on these transactions. However, the firm was not fully compensated for its services, which led to the legal dispute.

Court records revealed that N3.8 trillion currently resides in the Stamp Duty Collection Account, to be distributed among the federal government, state governments, local governments, the Federal Inland Revenue Service (FIRS), Coordinating Consultants, and other bodies.

Court Orders CBN to Pay N579 Billion Stamp Duty Arrears to Private Firm

In response, the CBN and the Attorney General of the Federation (AGF) contested the validity of Kasmal’s contract with NIPOST, arguing that only the federal, state, and local governments are entitled to the revenue generated from stamp duties. They further claimed that NIPOST lacked the statutory authority to collect stamp duties.

However, in his ruling, Justice Inyang Ekwo dismissed the defendants’ objections, stating that the claim against NIPOST’s authority did not hold up legally. He subsequently ordered the CBN to pay Kasmal N579 billion, along with applicable interest, within a stipulated timeframe.

Advertisements

Leave a Comment

Your email address will not be published.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

Scroll to Top
Top 10 Female Musicians in Ebiraland in 2024.