FG suspends proposed telecoms tax

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.

Pantami said the telecommunications sector is already overburdened by excessive and multiple taxations.

Initial Reason for the Tax: In its bid to boost Nigeria's oil revenue, the Federal Government had in August announced its intention to begin the implementation of its proposed excise duties on telecommunication services and beverages in 2023.

The Budget Office of the Federation under the Ministry of Finance, Budget and National Planning, had said that it expected excise duty revenue to grow exponentially because of the introduction of telecoms service charge.

But Pantami had opposed the proposed tax on telecommunication services since it was introduced.

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.