By John Ikani
The Nigerian Government has announced that it will exempt the telecom sector from the 5% excise duty proposed by the finance sector earlier this year.
The proposal had been suspended while awaiting the outcome of a presidential review committee on the 5% excise duty on telecommunication services by the Federal Ministry of Finance.
Speaking to newsmen after receiving the report submitted by the Presidential Review Committee on Excise Duty in the digital economy sector, the Minister of Communications and Digital Economy, Professor Isa Pantami, confirmed that the president has approved the exemption of the digital economy sector from the 5% excise duty tax.
Professor Pantami said “the president’s decision was due to the argument presented to him that the implementation of the excise duty tax would increase the suffering of citizens.”
He also noted that “other sectors in the country should be challenged to improve revenue generation for the government, not the sector that has already increased revenue generation by 594% within only three years.”
This, he said, was unprecedented in the history of Nigeria.
Speaking further, the Minister stressed that “the telecom sector is already burdened by taxes and levies, with 41 categories of taxes, levies, and charges already imposed on the digital economy sector.”
According to him, “there is no justification for an additional excise. He noted that the sector has been contributing hugely to Nigeria’s economy, and imposing more tax burden would destroy the industry.”
The Minister further justified the president’s decision to exempt the digital economy sector from the 5% excise duty by stating that it is the only sector where the prices of services have been reduced.
While noting that there is no justification for the government to impose more burden on its poor citizens, Pantami also pointed out that many micro, small, and medium enterprises depend on the sector for survival, and an increase in tax would take a toll on these businesses.
In his remarks, the Executive Vice Chairman of the Nigerian Communications Commission, Professor Umar Danbatta, reiterated the commission’s commitment to improving the telecom industry.
Danbatta said that the reduction of data had been the main target of the commission, and that the average 1 gigabite of data has dropped to N335 from N350.
He advised Nigerians to report mobile network operators charging exorbitant prices for data.
