Lagos Revenue Service Clarifies: Stamp Duty As A Revenue Stamp And Not Postage Stamp....KINDLY READ THE FULL STORY HERE▶

Mr. Tokunbo Akande, the Special Adviser to the Executive Chairman of the Lagos State Internal Revenue Service, LIRS, has provided clarity on the misconception surrounding stamp duty, emphasizing that it is a revenue stamp, not a postage stamp.

During his appearance on the Tax Talk program on Channels Television, Akande explained that a stamp’s purpose extends beyond courier services. It is intended to certify transactions between two entities, be they corporate entities or individuals. The stamp duty framework ensures that documents related to these transactions are admissible in court should disputes arise.

Read Also Unizik Sets Example: Erring Staff And Students Face Punishments For Violations

He highlighted the historical significance of stamp duty, which dates back to 1939, and clarified that it remains in effect today, with updates through various finance acts. Stamp duty imposes a responsibility on parties involved in specific transactions to provide documented evidence that outlines the transaction’s details. For instance, when someone purchases an item from another person, a receipt is issued to record the transaction. This receipt must bear a stamp to be considered admissible evidence in court.

Regarding revenue generation in Lagos State, Akande mentioned that stamp duty has contributed significantly, generating over N5 million in revenue for the state in recent years. However, he noted that there is room for improvement, and the agency is considering reintroducing revenue stamps for wholesalers and distributors for transactions exceeding N10,000. This approach was used in the 1970s and is now being revitalized.

Akande highlighted the agency’s efforts to digitize its stamp duty operations, moving from manual to electronic processes. He emphasized that the Joint Tax Board (JTB) and LIRS have been actively promoting awareness about stamp duty and engaging with professional bodies.

Despite these efforts, he stressed that it is the legal requirement that all transactions between two entities be stamped, even including items like cheques. Proper stamping is essential to ensure the admissibility of documents in court, and individuals and entities are responsible for ensuring that documents related to transactions above a specific expense threshold receive proper stamping.

LIRS has expanded its presence across various states and has offices strategically located to assist taxpayers, including those seeking assistance with legal proceedings. Their team of experts ensures proper stamping and verification of necessary documents, with a strong emphasis on record-keeping to authenticate documents passing through their hands. Proper stamping of documents is crucial, as it ensures their legal validity in various transactions, such as borrowing from a bank or renting a property. Failure to stamp documents appropriately may render them inadmissible in court, and LIRS is committed to assisting in certifying documents with the necessary stamps.