FG’s N5trn tax drive suffers setback

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A major drive by the federal government to generate N5 trillion from stamp duty tax suffered another major setback in Abuja on Thursday, following an order of a Federal High Court in Abuja against the drive.

Justice Gabriel Kolawole, in a judgment, held that the tax drive was unconstitutional, illegal, unlawful and ultra-vire and set the drive aside.

Delivering judgment in a suit filed by the Nigerian Bottling Company (NBC) against the Nigerian Postal Services (NIPOST) and a private firm, Kasmal International Services, the judge held that NIPOST, under the law was not a tax collecting establishment of the federal government.

The contract awarded by NIPOST to Kasmal International Service to collect the tax on its behalf through the compulsory use of N50 stamps on official receipts and other documents of the bottling company among others was voided and set aside.

Kasmal Internal Services Ltd is owned by a Senator representing Ogun East in the Senate, Prince Buruji Kashamu.

 

 

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