The Federal Government has suspended the introduction of five percent excise duty in the digital economy sector, a tax which was earlier proposed by the Minister of Finance.
The Minister of Communications and Digital Economy, Isa Pantami disclosed this in Abuja during the inauguration of a committee that will review the policy.
Pantami said he personally rejected the policy and advised President Muhammadu Buhari against it in view of the effects it would have on the digital economy.
According to him, the introduction of excise duty in the telecommunication and information and communications technology industry would jeopardise the successes already recorded within the industry.
Pantami also noted that currently the ICT sector is over-burdened with multiple taxations both at the federal and state level.
He further disclosed that there are more than 41 taxes that telecommunication and ICT companies are paying and that it would be unfair to subject them to payment of excise duty.
Recall that 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 also 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.
Meanwhile, a presidential committee on the review of the excise duty in digital economy has been inaugurated by the federal government.
The committee has the Minister of Communications and Digital Economy, Isah Pantami as chairman and the Minister of Finance, Mrs Zainab Ahmed as a member.
Other members are the Executive Secretary of the Nigerian Communications Commission (NCC), Professor Umar Danbatta, the Executive Chairman of the Federal Inland Revenue Service, Muhammad Nami and representatives of the telecommunication industries.
The Federal Government had through the Budget Office of the Federation revealed that it will commence the implementation of ts proposed excise duties on telecommunication services and beverages in 2023.
