Isa Pantami, Minister of Communications and Digital Economy, says the Federal Government has removed its proposed 5% excise duty on telecommunication services.
The government announced that this was in line with the recommendations of a committee, the Presidential Review Committee on Excise Duty in the Digital Economy Sector, which was constituted to review the implementation of excise duty in the telecom sector.
“I am happy to report to you that President Muhammadu Buhari has approved the exemption of the digital economy sector from the 5% 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 sufferings 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 5% excise duty,” Pantami said.
“Many MSMEs and SMEs depend on the sector for survival; if the tax is increased, the impact will take a toll on these businesses.”