FG suspends introduction of excise duty to be paid by telecommunication companies

The Federal Government has suspended the introduction of the five percent excise duty in the digital sector, earlier proposed by the Minister of Finance. The Minister of Communications and Digital Economy, Isah Pantami disclosed this during the inauguration of a committee that will review the policy, in Abuja.

The minister said he personally rejected the policy and advised President Buhari on the adverse effects of this policy on the economy. According to him, the introduction of excise duty in the telecommunication and information and communications technology industry would jeopardise the successes already recorded within the industry. He also noted that the ICT sector at the state and federal level is currently over-burdened with multiple taxations.

Pantami further disclosed that the telecommunication companies are currently paying more than 41 taxes and it would be unfair to subject them to payment of excise duty.

Meanwhile, the federal government has inaugurated a presidential committee on the review of the excise duty in digital economy. The committee has the Minister of Communications and Digital Economy, Isah Pantami as chairman and the Minister of Finance, Mrs. Zainab Ahmed as a member.

Other members are the Executive Secretary of the Nigerian Communications Commission (NCC), Professor Umar Danbatta, the Executive Chairman of the Federal Inland Revenue Service, Muhammad Nami and representatives of the telecommunication industries.