Nigerians and groups within the country have spoken out against the imposition of six percent stamp duty on rent and lease agreements.
Social and Economic Rights Accountability Project, SERAP, is among the groups that have taken a hard stance against the policy, which has become a trending topic on Twitter.
In a short message repeated several times on its Twitter handle, SERAP said it rejects any stamp duty on rents.
Meanwhile; our correspondent CHUKWUEMEKA OBIOMA spoke with some persons who live in rented apartments in Lagos and they all agreed that the imposition of stamp duty on rent was unnecessary.
A member of the Estate Rent and Commission Agents Association, DOUGLAS EGWU also shared their understanding of the stamp duty charged on rent and lease agreements.
“The amount payable to the Inland Revenue while preparing the agreement or receipt is six percent based on what you collected as rent for the property. It is a new condition. That means the common agreement you’ve been doing between you and your tenant has to pass through a lawyer now.” EGWU said.
The Estate Rent and Commission Agent also mentioned the difficulty that government might face in enforcing the new stamp duty tax. “It will be difficult to enforce, except those that are afraid of government policies and conditions; there are the people that can follow it strictly.”
EGWU added that if a landlord is in good terms with his tenant, nothing will happen; adding that: “You know it is when there’s problem that this type of issues can come up.”
On his part, the immediate past President of the Real Estate Development Association of Nigeria, UGOCHUKWU CHIME, called on the Federal Government to withdraw stamp duty on rent, which he does not favour the ordinary people.