The Buhari-led federal government has disclosed plans to implement a five per cent inclusive excise duty on telecommunications services in Nigeria.
This move will make Nigerians pay 12.5 per cent tax on telecommunications services.
Minister of Finance Budget and National Planning, Zainab Ahmed made the announcement on Thursday July 28, at a stakeholders’ forum on implementation of excise duty on telecommunications services in Nigeria.
Speaking at the event organized by the Nigerian Communications Commission (NCC), Ahmed who was represented by the Assistant Chief Officer of the Ministry, Frank Oshanipin, said the five per cent excise duty has been in the Finance Act 2020 but was not implemented.
The delay in its implementation according to the Minister, was as a result of government’s engagement with stakeholders.
“Payments are to be made on monthly basis, on or before 21st of every month.
“The duty rate was not captured in the Act because it is the responsibility of the president to fix rate on excise duties and he has fixed five per cent for telecommunication services which include GSM.
“It is public knowledge that our revenue cannot run our financial obligations, so we are to shift our attention to non oil revenue.
“The responsibility of generating revenue to run government lies with us all.”