The Association of Telecommunication Companies of Nigeria (ATCON) have rejected plans to reintroduce a 5 percent excise duty on the telecommunications industry.
According to an executive bill, titled ‘Nigeria Tax Bill 2024,’ the national assembly is seeking the reintroduction of a 5 percent excise duty on telecommunications services, gaming, betting, and lottery activities.
The proposed bill comes more than one year after President Bola Tinubu, signed an executive order suspending the 5 percent excise tax on telecommunication services
Tony Emoekpere, president of ATCON, said the association is against the plan to reintroduce the excise duty.
According to Emoekpere, it would be unfair for the government to impose an excise duty when telecommunication companies are striving to sustain operations.
“We’ve been complaining already about the fact that the tariffs we are being charged have not increased for the last 10 years and the industry is actually groaning under the lack of revenue,” he said.
“To add this to the already existing situation is like a blow that might totally sink the sector.”
In 2023, new fiscal policy measures (FPMs) — approved by President Muhammadu Buhari — included supplementary protection measures (SPM), revised excise duty rates, and green taxes.
The FPMs also impose a 5 percent excise duty on mobile telephone services (GSM), fixed telephone, and internet services — postpaid and prepaid.
But, Isa Pantami, former minister of communications and digital economy had insisted that the sector remain exempted from the tax — citing a previous presidential approval for the exemption.
Emoekpere said the association thought since the sector was earlier exempted not just by the former minister but also by the current president, it had been a foregone issue.
(The Cable)
