Follow Us on Google
By Chinenye Anuforo
The Minister of Communications and Digital Economy, Prof Isa Pantami, has faulted the planned implementation of the five percent excise duty on the telecommunications sector by the Federal Government.
Pantami who spoke in Lagos yesterday at the ongoing forum organised by the Nigeria Office for Developing the indigenous Telecom Sector (NODITS), an agency under the Nigeria Communications Commision (NCC), said that, part of the responsibility of a responsive government is not to increase the problems of the citizens.
He said he is not in support of excise duty.
“I have not been contacted officially. If we are, we surely will state our case. The sector that contributes to the economy should be encouraged,” he said.
“You introduce excise duty to discourage luxury goods like alcohol. Broadband is a necessity. If u look at it carefully the sector contributes two per cent excise duty, 7.5 per cent VAT to the economy and you want to add, more” Pantami said. He added that the hardship at this time cannot be tolerated urging the tax masters to expand the scope of other sectors that are not contributing to the economy to do so.
“We must come together and salvage the sector. Only telecom sector contributed 13per cent to GDP and you want to add more.” Pantami also faulted the lawmaking process that produced the harsh tax because it didn’t involve the chairman of the House Communications Committee. “So we reject it,” he said.
According to him, further tax on the sector will impact on its contribution to the country’s Gross Domestic Product (GDP).
Earlier, telecommunications companies at the weekend kicked against the implementation of 2022 Fiscal Policy Measures and Tariff Amendments, which provide they pay 5 percent excise duty for services provided.
They rejected the tax, describing it as insensitive, unfair and capable of crippling the industry in the way and manner the oil industry has been crippled by different challenges.
According to them, the industry is already saddled with over 39 different taxes and the present one being proposed for implementation would only send the telecoms sector into a coma.
Speaking on behalf of ALTON, its President Gbenga Adebayo, said the Mobile Network Operators (MNOs) have taken holistic look at the 5 percent excise duty, but had no choice than to pass the burden of payment to the subscribers, argued that the industry had been afflicted by exchange rates problems as well as high costs of diesel to power its infrastructures due to erratic power supply in the country.
