Tax on telecommunication services is set to increase to 12.5% as the Federal Government plans to implement a 5% inclusive excise duty on telecommunications services in Nigeria.
This was made known by the Minister of Finance Budget and National Planning, Zainab Ahmed, at a stakeholders’ forum on the implementation of excise duty on telecommunications services in Nigeria which was held on Thursday in Abuja.
Ahmed, who was represented by the Assistant Chief Officer of the Ministry, Mr Frank Oshanipin, at the event organized by the Nigeria Communication Commission (NCC), said the 5% excise duty had been in the finance Act: 2020 but was not implemented.
What the Minister of Finance, Budget and National Planning is saying
Ahmed said the delay in its implementation was as a result of government engagement with stakeholders.
- She said, “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.’’
Telecoms consumers to bear burden of new tax as operators kick
The Chairman, Association of Licensed Telecom Owners of Nigeria (ALTON), Gbenga Adebayo said the additional 5% tax would be passed on to telecommunications consumers who will bear the burden.
Tax on telecommunication services is set to increase to 12.5% as the Federal Government plans to implement a 5% inclusive excise duty on telecommunications services in Nigeria.
This was made known by the Minister of Finance Budget and National Planning, Zainab Ahmed, at a stakeholders’ forum on the implementation of excise duty on telecommunications services in Nigeria which was held on Thursday in Abuja.
Ahmed, who was represented by the Assistant Chief Officer of the Ministry, Mr Frank Oshanipin, at the event organized by the Nigeria Communication Commission (NCC), said the 5% excise duty had been in the finance Act: 2020 but was not implemented.
What the Minister of Finance, Budget and National Planning is saying
Ahmed said the delay in its implementation was as a result of government engagement with stakeholders.
- She said, “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.’’
Telecoms consumers to bear burden of new tax as operators kick
The Chairman, Association of Licensed Telecom Owners of Nigeria (ALTON), Gbenga Adebayo said the additional 5% tax would be passed on to telecommunications consumers who will bear the burden.
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