Nigerians pay 12.5 per cent tax on telecommunications services soon

Nigeria telecommunication commission organised a stakeholders forum which was held on 28 July, 2022 in Abuja.

At the event, the finance minister, Budget and National planning revealed that federal Government plans to implement the 5% excise duty which has being in the finance act 2020 for telecommunication service.

This is coming high inflation rate. it now make Nigerians pay 12.5 per cent tax on telecommunications services which means higher cost of Data and airtime.

The ministers who was represented by the Assistant Chief Officer of the Ministry, Frank Oshanipin said Payments are to be made on monthly basis, on or before 21st of every month.

He said while government is shifting attention to non oil revenue, the responsibility of generating revenue to run government lies with us all.

The federal government is set to implement five per cent inclusive excise duty on telecommunications services in Nigeria, a move that 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.”