FG Has Suspended 5% Excise Duty On Telecom Services – Pantami

Federal government of Nigeria has suspended a five percent excise duty on telecommunications services in Nigeria.

Gatekeepers News reports that 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.

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

He had earlier faulted the government’s plan to implement the tax.

Minister of Finance, Budget and National planning, Zainab Ahmed had insisted that the federal government would go ahead to implement the five percent excise duty on telecommunications services.

Ahmed said all relevant agencies, including the communications ministry, were informed of the implementation of the tax as approved by President Muhammadu Buhari.

The Finance Minister had said in a statement issued by the ministry, “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.

“The circular Referenced No. F. 17417/VI/286, dated March 1, 2022, and titled “Approval for Implementation of the 2022 Fiscal Policy Measures and Tariff Amendments” was addressed to different ministers, including the honourable minister, communications and digital economy, and other heads of government agencies.”

Ahmed also faulted Pantami’s disapproval, adding that he was involved in the Finance Act.

In reaction to the recent development, the Media Aide to the Finance Minister, Yunusa Abdullahi simply said, “The statement is not from the finance minister and cannot speak on it.”