5% tax on calls, data remove – FG announces

The proposed five percent excise duty on telecommunication services has been removed, the Federal Government announced.

The Minister of Communications and Digital Economy, Isa Pantami on Tuesday at a press briefing said the announcement was in line with recommendations from the Presidential Review Committee on Excise Duty in the Digital Economy Sector.

The committee was constituted to review the implementation of excise duty in the telecom sector.

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Pantami said President Muhammadu Buhari approved the removal due to the strength of the argument presented to him by the Committee that an additional burden on the telecom sector will increase the sufferings of Nigerians and other sectors that are not making as much contribution to the economy should be challenged to do more and pay the five percent excise duty.

Pantami, who is the chairman of the committee, stated that many businesses would have felt the impact if the tax had been upheld.

“Many MSMEs and SMEs depend on the sector for survival; if the tax is increased, the impact will take a toll on these businesses,” he added.

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According to him, the telecoms sector was already paying 41 categories of taxes, levies, and charges and there is no need for excise duty in the sector.

Patanmi further added that the sector has been contributing hugely to Nigeria’s economy; more tax burden destroys the industry.

“We increased revenue generated by 594 percent from N51 billion quarterly to N481 billion quarterly.

This is the only sector where the prices of services have been reduced. there is no justification for the government to impose more burden on its poor citizens.”

Pantami maintained that the tax exemption will be upheld by the incoming administration which will be led by Bola Ahmed Tinubu.

NRTC had earlier reported in July 2022, that the Federal Government announced plans to implement a five percent excise duty tax on telecom services in a bid to increase its revenue sources.