Senate stops NIPOST from tax collection

The Senate on Tuesday stopped the  Nigerian Postal Service from tax collection.

Senate decision was sequel to the report submitted by Chairman, Senate Committee on Communications, Senator Oluremi Tinubu which was considered by the Senate.

Nigerian Postal Service and the Federal Inland Revenue Service have been on each other’s throats over who is statutorily empowered to collect Stamp Duty on behalf of the Federal Government.

The red chamber passed the Nigerian Postal Service (Repeal and Reenactment) Bill, 2021, which did not make provision in the Bill for tax collection.

The proposed law effectively restricts the agency to only postal operations in the country.

The Bill unbundled the agency by creating a commission to regulate its affairs.

Section 2 subsection 1-3 of the bill, however, specifically barred NIPOST from engaging in tax collection.

The section reads, “There is hereby established a body to be known as the Nigerian Postal Service (hereby designated as the Public Postal Operator) which (a) shall be a body corporate with perpetual succession and a common seal.

“The Postal Operator shall be charged with the responsibility of providing Universal Postal Service in Nigeria.

“In carrying out its Universal Postal Service obligations, the provisions of any enactment, law or regulation relating to taxation of companies, agencies or trusts funds shall not apply to the Public Postal Operator save for its obligation as a collecting agent of government.”

The Chairman of Senate Committee on Communication, said the sub-clause (1)(a) under clause 3 deals with the Establishment and Membership of the Governing Board of the Public Postal Operator.

She said it was amended to give the Governing Board power to formulate policies and adopt strategies for the overall development of the postal sector.

She added that sub-clause (1)(b) was deleted as the Board cannot borrow or raise funds for the entity while sub-clause (1)(c) was amended to align with existing legislation.

According to the Lagos Central lawmaker, clause 5(2) was also inserted to specify the minimum qualifications for the appointment of the Postmaster-General.

Tinubu further said that clause 8 which deals with the Application of Pensions Act was amended to align with the Pension Act.