By John Ikani
The Federal Government of Nigeria has suspended the proposed five percent excise duty on telecommunication services.
The development was announced by the Minister of Communications and Digital Economy, Isa Pantami, on Monday, September 5, 2022, during the inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector in Abuja.
The five percent excise duty is part of the provisions of the Finance Act 2020 which was not implemented.
When implemented, the excise duty would rise to 12.5 per cent.
Pantami said the telecommunications sector is already overburdened by excessive and multiple taxations.
The Minister had earlier kicked against the excise duty saying it was passed without due consultation and would increase the cost of telecommunication services for Nigerians.
Recall that during the maiden edition of the Nigerian Telecommunications Indigenous Content Expo organised by the Nigeria Office for Developing the indigenous Telecom Sector, the minister spoke against the five percent tax on telecom services.
“The Ministry of Communications and Digital Economy is not satisfied with any effort to introduce excise duty on telecommunication services.
“Beyond making our position known, we will go behind the scenes and go against any policy that will destroy the digital economy sector. We will go to any extent to legitimately and legally defend its interest,” he said.
Speaking on Monday, the Minister said he will make further steps to fight it, adding that as “a minister, based on the provision of the constitution of Nigeria, section 148, we are exercising the powers of Mr President.”
According to him, members of the National Assembly were not consulted.
He threatened to “go behind the scenes and go against any policy that will destroy the digital economy sector. We will go to any extent to legitimately and legally defend its interest.”
Pantami’s statement was directed to moves made by the Minister of Finance Budget and National Planning, Zainab Ahmed, who accused him of sabotaging government efforts, adding that he cannot claim ignorance of a policy approved by the Federal Executive Council.
She said, “In view of the position of Prof. Pantami, there could be the question whether he was absented in the whole processes that resulted in the Finance Act, which is a product of both the National Assembly and Federal Executive Council.
“Suffice this to say that before the Act, the Finance Bill would have been through the FEC of which Prof. Pantami is a member and the National Assembly. In other words, he was involved in the making of the Finance Act which spells the said excise tariff hike policy.
