Isa Pantami, Min. communication and digital economy punchng
Business

Pantami Urge Firms to Ignore Telecom Tax

The Minister of Communications and Digital Economy, Isa Pantami has urged telecommunication firms and other stakeholders to ignore attempts by officials to impose 5% excise duty on telecom services.

Gbadamosi Azeezah

In a statement released by the minister, he confirmed that in March of this year (2023), President Muhammadu Buhari gave approval for companies in his sector to be exempted from excise duty tax. He emphasized that this supersedes any other declaration regarding the issue.

The minister made her remarks after the Federal Government announced that it will move forward with a five percent tax on mobile telephone service, fixed-line phone calls and Internet usage—a plan that was originally meant to be phased out.

According to a new Fiscal Policy Measures for 2023, which was issued in April by the Minister of Finance, Budget and National Planning Zainab Ahmed.

A copy of the leaked circular, referenced HMFBNP/MDAs/CIRCULAR/2023 FP/04 and titled, ‘Approval for the Implementation of the 2023 Fiscal Policy Measures and Tariff Amendments’, stated that the President, Major General Muhammadu Buhari (retd), had approved the implementation of the 2023 fiscal policy measures.

A part of the document read, “The excise duty on single use plastics shall also take effect from 1st of June, 2023. While on the other hand, the excise duty rate on telecommunication services remains as approved by Mr President and published in the Official Gazette No. 88, Vol. 109 of 11th May 2022.”

But according to a statement released by the Senior Special Assistant Media/Spokesperson for the Minister of Communications and Digital Economy, Mrs Uwa Suleiman, on Wednesday, Buhari’s exemption of digital economy sector tax remains, despite new attempts to impose the excise duty tax on the sector.

The statement read in part, “The office of the Honourable Minister of Communications and Digital Economy, hereby assures the sector and the general public that the President’s approval, supersedes all other declarations regarding the issue and we stand by it. Any contrary proclamation should be disregarded by the general public.”

Pantami's statement made it clear that the minister believes a five per cent excise duty tax on telecoms services is unjustifiable and burdensome for consumers of the services.

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