The proposed 5 per cent excise duty on telecommunication services has been suspended by the Federal Government.
This was made known by the Minister of Communications and Digital Economy, Isa Pantami, on Monday during the inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector in Abuja.
The minister asserted that the telecommunications sector is already overburdened by excessive and multiple taxation.
Federal Government had in July concluded plans to impose 5% Excise Duty on all telecommunications services ranging from calls, SMS and data services.
This was after major stakeholders in the sector, the Association of Licensed Telecoms Operators of Nigeria (ALTON), Association of Telecommunications Companies of Nigeria (ATCON) and National Association of Telecoms Subscribers (NATCOMS) have kicked against the move, describing it as anti-people, provocative, strange, insensitive and irresponsible.
They made the position known at a stakeholders’ forum organised by the Nigerian Communications Commission, (NCC) on the proposed implementation of the Exercise Duty on all telecommunications services in Nigeria held in Abuja.
They argued that such imposition would further aggravate the suffering of the Nigerian masses who had already been pushed into hardship and extreme poverty.
The new 5% Exercise Duty is part of the new Finance Act signed into law by the President in 2020.
However, Pantami has maintained that he is against the implementation of this tax, which would increase the cost of telecommunication services for Nigerians.
