FG suspends proposed VAT on telecommunication services

The Federal Government has suspended the proposed excise duty on telecommunication services.

This was disclosed 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.

According to the minister, the telecommunications sector is already overburdened by excessive and multiple taxation.

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 has maintained that he is against the implementation of this tax, which would increase the cost of telecommunication services for Nigerians.

NewsWireNGR reports that had in earlier stated that Nigerians will soon start paying a 12.5 per cent tax on telecommunications services as the Federal Government plans to implement five per cent inclusive excise duty on telecommunications services in Nigeria.

The five per cent was scheduled to be added to the already existing 7.5 per cent Value Added Tax (VAT) on telecommunications services.

She said the delay in its implementation was a result of government engagement with stakeholders.

“Payments are to be made on monthly basis, on or before 21st of every month.

“The duty rate was not captured in the Act because it is the responsibility of the President to fix rate on excise duties and he has fixed five per cent for telecommunication services which include GSM.

“It is public knowledge that our revenue cannot run our financial obligations, so we are to shift our attention to non oil revenue.

“The responsibility of generating revenue to run government lies with us all,” she said.