FG suspends proposed 5% excise duty on telecom services, says sector overburdened

The Federal Government has suspended its planned implementation of a 5% excise duty on telecommunications services.

The suspension was announced by the Minister of Communications and Digital Economy, Isa Pantami, on Monday during the inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector in Abuja.

The Minister who had earlier rejected the proposed tax noted that the telecommunications sector is already overburdened by excessive and multiple taxations..

It will be recalled that the  Federal Government through the Budget Office of the Federation had earlier revealed that it would begin the implementation of its proposed excise duties on telecommunication services and beverages in 2023.

However, Pantami faulted the timing and process of imposing the tax on the industry, arguing that part of the responsibility of responsive government is not to increase the problems of the citizens.

Speaking at a recent forum in Lagos, Pantami said: “I have not been contacted officially. If we are, we surely will state our case. The sector that contributes to the economy should be encouraged. You introduce excise duty to discourage luxury goods like alcohol. Broadband is a necessity!”

“If u look at it carefully the sector contributes 2% excise duty, 7.5% VAT to the economy and you want to add, more,” he added.