Time for truce between FIRS and NIPOST
THE PUBLIC SPAT BETWEEN THE Federal Inland Revenue Service and the Nigerian Postal Service is one of those unedifying features of the current dispensation where government agencies are fighting each other without any form of rebuke from their superintendents. The feud is over three months since it has been brewing.
Considering their importance of these agencies in the life of theis nation, it is important to nip the feud in the bud before more damage is done to the delicate economy.
Last week, they squared up, once again, over the stamp duty manddate, with NIPOST saying its stamp duty account was opened by the Central Bank of Nigeria under the Treasury Single Account. The FIRS had claimed in a series of tweets the week before that NIPOST operated an illegal Stamp Duty Account. It also vowed to ensure that all monies in the account were recovered and transferred into the Federation Account, adding that NIPOST must account for every kobo in the account.
NIPOST which had been collecting the stamp duty untill recently suddenly found FIRS challenging is mandate to collect the duty. Somethimg that should have been settled at the negotiating table degenrated into an open fist cuffs, bringing shame to the administration. the postal agency said the account in question was opened in consultation with the Office of Accountant-General of the Federation.
NIPOST maintained that the name of the account was NIPOST Stamp Duties Collection Account, adding that the CBN gave instruction to Deposit Money Banks to commence the deduction of N50 stamp duties from bank customers accounts at the time.
“The account belongs to the federation and NIPOST does not have access to whatsoever monies lodged into the account. As such, the question of illegality and misappropriation does not arise,” the postal organisation said.
NIPOST mandate has the force of the law- NIPOST Act 2004 provides and vests solely in NIPOST the power to print adhesive postage stamps, which is the instrument for denoting documents and other transaction instruments in compliance with the provisions of the Stamp Duties Act..
However, the Finance Act 2019 transferred the mandate to FIRS, a move seen by NIPOST as an ursupation of its role.It argued that historically, the post in Nigeria, just like in other nations, had at different times produced adhesive postage stamps and revenue stamps for the Federal Government.
FIRS, however, said it has the mandate to collect all taxes in Nigeria. It said since the stamp duty is a form of tax, the collection falls within its purview.
The issue can be amicably resolved. The bottomline is that both agencies are collecting the duty for the government. Therefore, the responsibility can be shared.
It is however, heart warming that the House of Representatives has waded into the matter play the role of a mediator. The House described the battle between the agencies as “unnecessary and unhelpful.”
James Faleke, chairman, House committee on Finance called a stakeholders’ meeting in Abuja last week to resolve the crisis. Faleke’s objective was to settle the dispute between the two agencies and reach a resolution on the N58bn stamp duties revenue collected from February 2016 to April 2020.
Faleke was not happy about the embarassing fight and called for a truce. This is a good development and a prelude towards a peaceful resolution of the case. Peace should be given a chance at a time when the economy is sick and revenue thinning out.
It is also heart warming that Mohammed Nami, chairman of FIRS and Maimuna Abubakar, NIPOST chair, both saw the need to embrace peace. Reports indicate that both of the regretted that as agencies of the government, FIRS and NIPOST allowed a simple situation to degenerate to media exposure.
Now is the time for the two agencies to sheath the sword and work for the good of the country,