On why he kicked against the excise duty, Pantami said in spite of the achievements of the sector, it also had its challenges, which could be a barrier to its development in the next few years to come.
By Jeffrey Agbo
The Federal Government has suspended the implementation of the 5 per cent excise duty charge earlier proposed on telecom services in the country, the Minister of Communications and Digital Economy, Prof. Isa Pantami, disclosed this on Monday.
While inaugurating a committee to review the 5 per cent excise duty in Abuja, Pantami said that President Muhammadu Buhari granted his prayer for the immediate suspension of the 5 per cent excise duty.
The government had hinted on July 28 that the five per cent would be added to the already existing 7.5 per cent Value Added Tax (VAT) on telecommunications services.
However, speaking during the inauguration of the committee, Pantami said: “It is because of this that the president had granted my prayers. He approved that a committee be constituted to look into the matter carefully and advise him accordingly.
“The president has appointed me to be his eyes and ears in the sector. It is my responsibility to ensure we are just and fair to the operators, government and most importantly the consumers.”
Pantami, who serves as the committee’s chairman, further told the members how he explained to the president the effect of the excise duty on the sector.
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“Of recent, it was announced that some of our respected brothers and sisters kick-started the process of introducing excise duty in the telecom sector.
“Based on the constitution and being the representative of Buhari in the sector, I rejected that wholeheartedly.
“I formalised my position and explained to him in a letter that could be referred to as a petition because excise duty was usually fixed on luxury products
“I told the president in the letter that if care is not taken, that attempt will destroy the digital economy sector that is becoming the backbone of our economy,” he said.
On why he kicked against the excise duty, Pantami said in spite of the achievements of the sector, it also had its challenges, which could be a barrier to its development in the next few years to come.
Members of the committee include the Minister of Finance, Budget and National Planning, Chairman, Federal Inland Revenue Services (FIRS), Executive Vice Chairman (EVC) of the Nigerian Communications Commission (NCC) and representatives of all telecom companies in Nigeria.