Stamp duty traces its origins back to 17th-century Europe. It was first introduced in the Netherlands in 1624 and soon adopted by England in 1694 as a means to raise revenue for war efforts against France. The tax was applied to various documents, including property deeds, playing cards, and even newspapers. The effectiveness of stamp duty as a revenue-raising tool led to its adoption across British colonies, leaving a lasting legacy in many modern legal systems.

 

In the context of property, stamp duty was initially designed to ensure that all legal documents were properly registered, thereby providing the government with a reliable source of income and maintaining comprehensive public records. Over time, it became a standard feature of real estate transactions, often seen as a necessary but burdensome cost.