September 05, (THEWILL) – The Federal Government has suspended a five percent excise duty on telecommunications services in Nigeria.
Minister of Communications and Digital Economy, Isa Pantami, announced this on Monday 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 had kicked against the excise duty saying it was passed without due consultation.
The minister said the sector is already overburdened by excessive and multiple taxations.
Pantami had earlier faulted the plan to implement the tax, but her counterpart in the Finance Ministry, Zainab Ahmed, had insisted that the federal government would go ahead to implement the five percent excise duty on telecommunications services.
Ahmed noted that all relevant agencies, including the communications ministry, were informed of the implementation of the tax as approved by President Muhammadu Buhari.
“Against the comments by Isa Ali Pantami, honourable minister of communication and digital economy, concerning the five percent excise duty hike on telecoms services, it is worth noting that there was a circular stating the planned hike which was addressed to the communication minister and other relevant ministries and agencies of government.
“In view of the position of Prof. Pantami, there could be the question of 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”, the Minister of Finance, Budget and National Planning had said in a statement.
The finance minister also faulted Pantami’s disapproval, adding that he was involved in the Finance Act.
About the Author
