FG SUSPENDS PROPOSED 5% TAX ON DATA, PHONE CALLS & TEXTS

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

The Minister of Communications and Digital Economy, Isa Pantami made this known during the inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector in Abuja on Monday.

Patami disclosed that he was personally against the implementation of the tax as it will increase the cost of telecommunication services, he further stated that the telecommunications sector is already overwhelmed by excessive and multiple taxation..

The Federal Government had through the Budget Office of the Federation revealed that it will commence the implementation of its proposed excise duties on telecommunication services and beverages in 2023..

The Minister who revealed that the National Assembly members were not consulted, added that the introduction of excise duty in the telecommunication and information and communications technology industry would jeopardise the successes already recorded within the industry.

Also disclosing that the ICT sector is over-burdened with multiple taxations both at the federal and state level, Pantami further revealed 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.