The Nigerian Government has finally exempted the digital economy sector from the 5% excise duty proposed earlier by the finance sector in 2022.
The Government had suspended the proposal, pending the outcome of the recommendation of presidential review committee on the 5% Excise duty on telecommunication services by the Federal Ministry Finance.
The Minister of Communications and Digital Economy, Professor Isa Pantami disclosed this after receiving the report submitted by the Presidential Review Committee on Excise Duty in the digital economy Sector.
Addressing the media after the meeting, the Minister said that the president has approved the exemption of the digital economy Sector from the 5% excise duty tax.
“I Am glad to say and announce to Nigerians that his Excellency Mohammadu Buhari, the president of the federal republic of Nigeria has approved the exemption of the digital economy sector from the 5% excise duty to be paid. And this is because of the argument presented to him that the implementation will increase the suffering of citizens.
“And he strongly insisted that other sectors to in our country are to be challenged to improve revenue generation for government not the sector that has already increased revenue generation by 594% within only three years. Which is unprecedented in the history of Nigeria,” Pantami assured.
According to Professor Pantami, already, the telecom sector is over burdened by taxes and levies.
He noted that 41 categories of taxes, levies and charges are already in the digital economy sector; hence there is no justification for an additional excise.
“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.
He went further to justify why the president had to exempt the digital economy sector from the 5% excise duty.
“This is the only sector where the prices of services have been reduced.
“There is no justification for the government to impose more burden on its poor Citizens,” the Minister said.
He also noted that “Many Micro, Small and Medium Enterprises , MSMEs and Small and Medium Enterprises, SMEs depend on the sector for survival; if the tax is increased, the impact will take a toll on these businesses.depend on the sector for survival; if the tax is increased, the impact will take a toll on these businesses.
“To this end, on March 6, President Muhammadu Buhari approved the exemption of the digital economy sector on the 5 per cent excise duty because it would harm the Nigeria citizens“The Minister explained
Improve Telecomm Industry
The Executive Vice Chairman of the Nigerian Communications Commission, Professor Umar Danbatta, in his remarks reiterated the commission’s commitment to improving the telecom industry.
He said the reduction of data had been the main target of the commission.
Danbatta stated that the average 1 gigabite of data has dropped to N335 from N350.
He therefore advised Nigerians to report mobile network operators charging exorbitant prices for data.
Confidence Okwuchi
