FIRS orders deduction of stamp duty, CIT, others from source

There is no more hiding place for government contractors in the payment of Stamp Duty, Withholding Tax and Company Income Tax (CIT).

“Revenue collecting agencies are to deduct stamp duty, withholding tax and CIT from their contractors at the point of payment and promptly send these to the Federal Inland Revenue Service (FIRS) in lump sum, rather than staggered payments as it is the current practice”, Muhammad Nami, said in Lagos on Tuesday.

The FIRS Chairman said: “This is better for everybody as we would all have to do less reconciliation and enforcement activities, and we can therefore use the saved time to expand the tax net.”

Nami spoke during a visit to Governor Babajide Sanwo-Olu at the Lagos State House at Alausa, Ikeja,

He said that some multinational companies operating in Lagos – Nigeria’s commercial hub – have not been paying CIT since 2011.

Nami said the tax-evading firms will be tracked down and put in the tax net.

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