President Muhammadu Buhari has approved the exemption of the telecommunications sector from the proposed five percent excise duty.
The minister of communications and digital economy, Isa Pantami, disclosed this on Tuesday, March 21, at a news conference organised by the presidential review committee on excise duty in Abuja.
“I am happy to report to you that President Muhammadu Buhari has approved the exemption of the digital economy sector from the five per cent excise duty to be paid and this is because of the strength of the argument presented to him by the Committee that additional burden on telecom sector will increase the s¥fferings of Nigerians and that other sectors that are not making as much contribution to the economy should be challenged to do more and pay the five per cent excise duty.
Many MSMEs and SMEs depend on the sector for survival; if the tax is increased, the impact will take a toll on these businesses.
There is no need for excise duty in the telecom sector because the industry is already heavily taxed up to 41 taxes. The sector has been contributing hugely to Nigeria’s economy; more tax burden destroys the industry.
We increased revenue generated by 594 per cent from N51 billion quarterly to N481 billion quarterly. This is the only sector where the prices of services have been reduced. here is no justification for the government to impose more burden on its poor citizens,” he said.