BREAKING NEWS, Business
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Adebayo Shittu, minister of communications, warns Nigeria Postal Service against appointing agents to collect stamp duty on behalf of the federal government
ADEBAYO Shittu, minister of Communications, has warned the Nigeria Postal Service, NIPOST, against appointing agents to collect stamp duty on behalf of the federal government. The warning followed the information the ministry received that a committee purportedly raised by the acting post-master general has commenced the process of appointing agents to collect stamp duty on behalf of the Nigeria Postal Service and, by implication, on behalf of the federal government.
“The Minister hereby serves this warning that NIPOST has not been authorized to appoint new agents in respect of collection of Stamp Duty. The Minister recalls that before this dispensation, a few corporate bodies and organizations were claiming to have an agreement with NIPOST in respect of this matter. There are presently, in the public domain, many claims and counter-claims.
“It is therefore expedient to thread with caution and ensure that all issues bordering on the administration of the STAMP DUTY by NIPOST are done in line with the Federal Government’s commitment to due process, transparency and accountability. The Minister has therefore directed the suspension of any new process in this regard until a new Post-Master General is appointed by the Federal Government in due course,” a statement issued by Adeyanju Binuyo, special assistant to minister of communications on Sunday, March 28, said.
Explaining why stamp duty is serious business, the statement said that the federal government has projected an accrual in excess of N2.5 trillion from payment of stamp duties from the financial services industry as outlined by the Central Bank of Nigeria. “This is indeed a significant contribution to national revenue pegged at N3.8 trillion in the 2016 budget. It therefore needs no emphasis to state that the government places a big premium on earnings from the enforcement and diligent collection of fees on Stamp Duty”.
The CBN had in January issued a circular directing all banks and financial institutions to charge stamp duties on lodgments into current accounts with value of N1,000 and above. Indeed, the apex bank had emphasised the need to shore up government revenue from the non-oil sector, especially from taxes and rates. The bank also reiterated that the measure was in compliance with the provisions of the Stamp Duties Act, LFN 2004 as reinforced by a court pronouncement in suit No. FHC/ L /CS / 1710/2013.
“With immediate effect, all Deposit Money Banks and other financial institutions shall commence charging N50 per eligible transaction in accordance with the provisions of the Stamp Duties Act and the Federal Government Financial Regulations 2009; that is, all receipts given by any bank or other financial institution in acknowledgement of services rendered in respect of electronic transfer and other teller deposits from N1,000 and above,” the statement said.
— Mar. 29, 2016 @ 8: 00 GMT
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