Fakoyejo OlalekanThe proposed excise duty on telecommunication services has been suspended by the Federal Government after protest from the Minister of communications and digital economy, Isa Pantami.
In August, the federal government had imposed five per cent excise duty on telecommunications services, but without wide consultation according to Pantami.
Join our WhatsApp ChannelPantami had stated last month that he will use every legal instrument available to fight the decision because it would negatively affect the sector, which has been burdened by various taxes in state and federal level.
The telecommunication and information and communications technology companies have over 41 taxes in Nigeria, and Pantami said adding the excise duty will only increase the financial burden of the companies in the industry.
President Muhammadu Buhari’s administration backed Pantami’s stand, and has suspended the excise duty, the minister revealed on Monday after the inauguration of a committee that will review the policy.
Pantami said the National Assembly was not consulted before the excise duty was concluded on.
Meanwhile, the suspension comes after the Nigerian Communications Commission (NCC) increased the International Termination Rate (ITR) from $0.045 to $0.10 (10 cents) per minute, which will raise the revenue MTN, Glo, Airtel and 9mobile generate from it.
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