The Nigerian Federal Government has announced the removal of the proposed five per cent excise duty on telecommunication services.
The move is in line with the recommendations of the Presidential Review Committee on Excise Duty in the Digital Economy Sector, which was set up to review the implementation of excise duty in the telecom sector, Investors King reports.
Isa Pantami, the Minister of Communications and Digital Economy and chairman of the committee, made the announcement at a press briefing.
He stated that the exemption was granted due to the argument presented to President Muhammadu Buhari by the committee that the additional burden on the telecom sector would increase the sufferings of Nigerians.
The telecoms sector is already heavily taxed, paying up to 41 categories of taxes, levies, and charges. Pantami noted that there was no need for excise duty in the sector, as it had been contributing hugely to Nigeria’s economy.
The proposed tax had been met with resistance from telecommunication consumers under the National Association of Telecoms Subscribers, who had sued the Federal Government in court. The tax would have been an additional burden on the already struggling small and medium-sized enterprises that depend on the sector for survival.
The removal of the excise duty is a welcome development for consumers and businesses in the sector. It will relieve the burden on telecom operators and ensure the continued growth of the industry.
The government’s decision to exempt the digital economy sector from the tax is a step in the right direction towards promoting a favorable business environment for investment and growth.
