Abuja exempts telecom from 5% excise duty at the urging of Pantami
By Jeph Ajobaju, Chief Copy Editor
Isa Pantami has won his argument at the Federal Executive Council (FEC) that the digital economy be exempted from 5 per cent excise duty.
President Muhammadu Buhari approved the exemption of the Digital Economy from the tax to reduce the suffering of Nigerians.
The federal government had, on September 5, 2022, suspended the duty on telecom services, following intervention of the Communications and Digital Economy Minister who argues the sector is already overburdened with multiple taxation.
Abuja raised a committee to look into the matter and revert to Buhari.
__________________________________________________________________
Related articles:
Airborne beams of light, hope of faster internet in Africa
NCC grants varsities N500m for telecom research
Telecom firms invest N613.13b in 4G, 5G
__________________________________________________________________
Imposition without consultation
Pantami disclosed when he unveiled the report of the Presidential Review Committee on Excise Duty in the Digital Economy Sector in Abuja that the duty was imposed without due consultation with the ministry and other stakeholders, hence his appeal for its suspension.
He explained that even in the Finance Act of 2021, there was no mention of the duty, stressing it was a subsidiary legislation not captured in the law, per The Guardian.
There are 41 categories of taxes and charges in the telecom sector, he stressed.
Pantami said he stopped telecom operators from raising tariffs because it would further impoverish Nigerians.
In his view, the negative impact of the excise duty on the sector would be felt by others who leverage telecom services and will ultimately transfer the burden to consumers.
Telecom creates 500k jobs, contributes $70b to GDP
Telecom has created 500,000 formal and informal sector jobs and contributed $70 billion to Gross Domestic Product (GDP) to improve the lives of millions of citizens, and is set for greater heights with 5G, ecommerce, fintech, and nig data.
Nigerian Communications Commission (NCC) Executive Vice Chairman Umar Danbatta, who made the disclosures, said the impact of technology on any society is tremendous.
He was speaking on “Using Technology to grow Nigeria’s GDP” at a Cyberchain even in Abuja, represented by Digital Economy Principal Manager Ella Eli.
“Nigeria’s adoption of digital technologies has enabled it to diversify its revenue and economy, created jobs, improved services and efficiency, reduced wastages, and optimised resources available,” he said.
“Telecommunications has contributed over $70 billion to the Nigerian economy, provided over 500,000 jobs in the formal and informal sectors, and improved the lives of millions of Nigerians.
“Most Nigerians today cannot comprehend life without mobile phones.
“Presently, the liberalised telecommunications sector has brought with it, instant messaging, instant information, financial inclusion, telemedicine, smart farming, e-Commerce and virtual learning, however, the best is yet to come.
“The benefits of technology are endless and with technology becoming affordable, accessible, and available, these benefits will increase tremendously.”
