NIPOST Opposes Finance Minister’s Plan to Stop Stamp Duties

• NIPOST Opposes Finance Minister’s Plan to Stop Stamp Duties

The Nigerian Postal Service through the Senior Staff Association of Statutory Corporations and Government Owned Companies has vehemently opposed the plan by the Ministry of Finance to stop N50 stamp duty.

The Federal Government had directed the Central Bank of Nigeria to enforce the implementation of Stamp Duty Policy on bank customers in 2017 to up revenue generation.

Deposit Money Banks (DMBs) are required to deduct N50 from any transaction above N1000 in compliance with the Stamp Duties Act & Federal Government Regulations Act of 2009.

While the N50 is for receipt and other costs incurred on service render by NIPOST to customers, the receipts issued by DMBs are automated at zero cost — technological integration. Suggesting that the federal government is using stamp duty act to augment revenue generation or exploit Nigerians.

Also, the recent directive by the Central Bank of Nigeria to extend stamp duty to the retail sector, mandating all Point of Sale (PoS) owners to start deducting N50 stamp duty on transactions above N1000 has failed as customers now prefer to pay cash. Another setback for the cashless policy being pushed by the central bank.

In a letter signed by Mohammed Yunusa, President General of the Union, and Ayo Olorunfemi, General Secretary of the union and addressed to President Muhammadu Buhari, the union said the Minister of Finance, Zainab Ahmed, and the Federal Inland Revenue Service pushing for the stoppage of stamp duty across NIPOST were only plotting to ‘kill’ the service.

According to the union, one of NIPOST core functions/mandates was the issuance of postage stamps.

“We have decided to alert you to the impending attempt by the Minister of Finance in collaboration with the FIRS to kill and bury NIPOST,” the letter, which was made available to journalists on Thursday, said.

The letter added, “Currently, NIPOST is positioned to cause massive grass roots development through rural financial inclusion.

“It is also currently involved in the payment of conditional cash transfer to the underprivileged in Kebbi, Edo, Ondo and Enugu states.

“These cannot work effectively if the attempt by the Minister of Finance to take away the collection of the N50.00 electronic stamp duty is not checked.”