By John Ikani
The Nigerian Government has reintroduced the 5% excise duty tax on the telecom industry, a move previously suspended in March this year.
According to a circular signed by the Minister of Finance, Budget, and National Planning, Zainab Ahmed, the new Fiscal Policy Measures (FPM) for 2023 includes the reimplementation of the tax, which was originally proposed in August last year as a way to boost the country’s revenue generation.
Recall that in a bid to look beyond the oil sector for revenue generation, the government had proposed the excise duties on telecommunication services and beverages, which were set to take effect in 2023.
However, the Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo and other industry stakeholders rejected the tax, citing concerns that it would be a burden passed on to subscribers.
In March this year, the Minister of Digital Economy, Prof Isa Pantami, had announced that the telecom sector had been exempted from the proposed 5% tax duty, after due consultations with necessary stakeholders.
Pantami had argued that the sector was already overburdened with excessive and multiple taxations.
Despite efforts to shelve the tax, the government’s new Fiscal Policy Measures for 2023 have reintroduced it.
Part of the circular titled ‘Approval for the Implementation of the 2023 Fiscal Policy Measures and Tariff Amendments.’ reads: “The excise duty rate on Telecommunication Services remains as approved by Mr President and published in the Official Gazette No. 88, Vol. 109 of 11th May 2022.”
