The Nigerian Postal Service (NIPOST) and Federal Inland Revenue Service (FIRS) have taken the battle on which government agency is authorised by law to collect stamp duties to Twitter.
Maimuna Abubakar, the Board Chairman, NIPOST had gone on Twitter to accuse FIRS of usurping the powers of the poster agency to collect stamp duties.
She tweeted:
FIRS are now selling stamps instead of buying from us #justicefornipost
— Maimuna Abubakar (@ref_ng) August 2, 2020
NIPOST are the sole custodians of national stamps, another agency printing and selling stamps is against the law of the land #justicefornipost.
— Maimuna Abubakar (@ref_ng) August 2, 2020
I like to make this clear, NIPOST is the only agency charged with the responsibility of producing adhesive stamps and revenue for the for the purchase of such stamp accrues to NIPOST #justicefornipost
— Maimuna Abubakar (@ref_ng) August 2, 2020
Did you know that NIPOST had generated over 60b in NIPOST CBN account for the Federal Government? #justicefornipost
— Maimuna Abubakar (@ref_ng) August 2, 2020
Quoting sections of the NIPOST Act, Maimuna continued in her tweets:
Under the extant laws of Nigeria to wit the NIPOST Act, the Stamp Duties Act and the Finance Act, the adhesive postage stamp is not only used for postage it is the only stamp with which denoting of ALL receipts documents and registrable instruments is to be done in Nigeria.
— Maimuna Abubakar (@ref_ng) August 4, 2020
The Tax Certificate or a Tax Clearance Certificate and any other formalized document issued by the FIRS whether in the form of a paper copy or an electronic copy which is printed out remains a document liable to be denoted with an adhesive postage stamp minted by NIPOST
— Maimuna Abubakar (@ref_ng) August 4, 2020
The Finance Act 2019 did not delete nor repeal neither did it amend Section 5(d) nor Section 34(1) and (2) of the NIPOST Act 2004.
— Maimuna Abubakar (@ref_ng) August 4, 2020
The Finance Act 2019 did not delete nor repeal neither did it amend Section 5(d) nor Section 34(1) and (2) of the NIPOST Act 2004.
— Maimuna Abubakar (@ref_ng) August 4, 2020
Section 34(2) of the NIPOST Act 2004 provides and vests in the Postmaster General of NIPOST the power to appoint or engage agents as business partners to sell by retailing the adhesive postage stamps minted by NIPOST.
— Maimuna Abubakar (@ref_ng) August 4, 2020
“Section 5(d) of the NIPOST Act 2004 provides and vests solely in NIPOST the power to mint stamps. This power is exercised by the Postmaster General of NIPOST pursuant to the provision of Section 34(1) of the NIPOST Act 2004.
“The receipt issued by the FIRS whether in the form of a paper receipt or an electronic receipt which is printed out remains a receipt liable to be denoted with an adhesive postage stamp minted by NIPOST
“The Finance Act 2019 did not delete nor repeal neither did it amend Section 11(1), (2) and (3) and Section 89(1) of the Stamps Duties Act 2004(As Amended 2019).
“Section 89(1) of the Stamps Duties Act 2004(As Amended 2019) provides that a receipt evidencing the payment of a money amount N4:00k (Four Naira) and above MUST be denoted using an adhesive postage stamp and the affixed adhesive postage stamp cancelled out.”
Responding to Abubakar in a statement titled That Vexed NIPOST Tweet, Director Communication and Liaison Federal Inland Revenue Service Abdullahi Ismaila Ahmad said it was unfortunate that the NIPOST Chairperson is yet to understand the difference between Stamp Duty and Postage Stamp.
The statement reads: “We appreciate the general public for demonstrating deep knowledge of the difference between Stamp Duty and Postage Stamp. It is unfortunate that Mrs Maimuna Abubakar, Chairperson of the NIPOST Board is yet to understand this.
“Our attention was drawn to the tweet by Mrs Abubakar. Her indecorous tweet would not have deserved any response but for the sensitive nature of the issue at stake, which if not sensibly treated and promptly corrected would likely mislead the public.
“To be sure, NIPOST is a government parastatal established by Decree 41 of 1992 with the function to *develop, promote, and provide adequate and efficiently co-ordinated postal services at reasonable rates*.
“This function is clearly contrary to the claim by NIPOST over the administration of stamp duties in Nigeria. On the other hand, the FIRS is the sole agency of got charged with the responsibility of *assessing, collecting, and accounting for all tax types including Stamp Duties*.
“It is therefore shocking to us that such a privileged young lady who happened to be appointed to high office would throw all caution to the air to cast aspersions on reputable public institutions like the National Assembly and FIRS, which she accused of stealing NIPOST idea. This, to say the least, is a preposterous claim and great disservice to the government and people of Nigeria. We wish to state categorically that, as an agency which operates within the ambit of the law.
“The FIRS is determined to not only ensure that all monies collected by NIPOST into its illegally operated Stamp Duties Account are fully remitted into the Federation Account but also make sure that any kobo not accounted for in that account is legally recovered in line with the charge of President Muhammadu Buhari to the recently inaugurated Inter-ministerial committee on the recovery of stamp duties from 2016 till date.
“In addition, anyone found culpable of misappropriating the funds in the said illegal NIPOST Stamp Duties Account would be made to face the law as provisioned by the country’s statute books. The public is hereby reminded that we at the FIRS are resolute in our resolve to safeguard national interests and not any personal ego or interest as NIPOST officials appear to carry on lately.
“We, therefore, call on right-thinking Nigerians to disregard that ill-advised tweet by Mrs Maimuna Abubakar and allied misinformation being disseminated by NIPOST in relation to Stamp Duties collection, which by law is the responsibility of the FIRS.”
What is Stamp Duty
According to PWC, under the Stamp Duty Act, stamp duty is payable on any agreement executed in Nigeria or relating, whatsoever, to any property situated in or to any matter or thing done in Nigeria. Instruments that are required to be stamped under the Stamp Duties Act must be stamped within 40 days of first execution.
All deposit banks and financial institutions are required to charge stamp duties of NGN 50 on every eligible transaction above NGN 10,000. There are exemptions for transactions between accounts held by the same bank customer and for salary accounts.
Why the Fight?
For years, NIPOST has been collecting stamp duties on behalf of the Federal Government. However, recently, the FIRS has come out to say it is its responsibilities to collect stamp duties. The reason for this fight is probably due to the millions of naira that are accrued from collecting these stamp duties. Simon Kolawale wrote in an article for This Day that from January to May 2019, FIRS raised N6 billion from stamp duties. Over the corresponding period in 2020, the revenue was N66 billion.
