Minister of Communications and Digital Economy, Isa Pantami, has said the Federal Government have suspended the proposed five percent (5%) excise duty on telecommunication services.
Pantami made this known on Monday, 5th September, 2022, during the inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector.
the Minister said he personally rejected the policy and advised president Muhammadu Buhari against it, in view of the effects it would have on the digital economy.
According to him, the introduction of excise duty in the telecommunication, information and communications technology industry would jeopardise the successes already achieved within the industry.
Pantami also noted that currently the ICT sector is over-burdened with multiple taxations both at the federal and state level.
He further added that there are more than 41 taxes that telecommunication and ICT companies are paying and that it would be unfair to subject them to payment of excise duty.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, in August, 2022, disclosed that the Government would begin the implementation of a five per cent excise duty tax on all voice calls, SMS and data services, in addition to the existing 7.5 per cent Value Added Tax (VAT), paid for goods and services across all sectors of the economy.
She made the disclosure during a stakeholders’ meeting, organised by the Nigerian Communications Commission, NCC, and the telecoms industry regulator, on Thursday, 11th August, 2022.
Story: Asma’u Sani