N3.8 Trillion Stamp Duty Saga: Court Adjourns Case, Directs CBN To Explain Why Kasmal’s Request Should Be Denied
The Federal High Court in Abuja, presided over by Justice Inyang Ekwo, has refused to grant an interim injunction restraining the Central Bank of Nigeria (CBN) from disbursing the N3.8 trillion naira deposited into the CBN NIPOST Stamp Duty Collection Account by Deposit Money Banks (DMBs) or commercial banks.
Kasmal International Services, represented by its legal team led by Dr. Alex Izinyon SAN, had approached the court claiming a percentage in the N3.8 trillion domiciled in the Stamp Duty Collection Account. The applicant joined the CBN and the Attorney-General of the Federation as respondents in the suit marked FHC/ABJ/CS/335/2024.
According to the applicant’s lawyer, Kasmal International Services was appointed by the Nigerian Postal Service (NIPOST) to represent them in the collection of a 50 naira stamp duty on all receipts given by banks or financial institutions for services rendered in respect of electronic transfers and teller deposits from N1,000 and above, in compliance with the Stamp Duties Act and the Nigeria Financial Regulations 2009. The agreement between NIPOST and the plaintiff included a remuneration of N7.50 from every 50-naira deduction.
The applicant argued that if the disbursement is done without considering its percentage, it will suffer irreparable losses. However, instead of granting the interim injunction, Justice Ekwo ordered the CBN to appear before the court and explain why the applicant’s request should not be granted.
At the resumed sitting on Friday, the court was informed that the CBN’s legal team had not yet shown cause as directed. Justice Ekwo then adjourned the matter to April 16 for hearing.
The stamp duty, an indirect tax imposed on several financial transactions, has been a subject of contention. In 2023, former CBN governor Godwin Emefiele revealed that the total revenue collected as stamp duty on behalf of the Federal Government between 2016 and 2022 was N370.686 billion.
