Malami Says Buhari Has Approved Exemption Of Telecoms Sector From 5% Excise Duty

The minister of communications and digital economy, Isa Pantami has disclosed that President Muhammadu Buhari has approved the exemption of the telecommunications sector from the proposed 5 percent excise duty.

Pantami disclosed this on Tuesday at a news conference organised by the presidential review committee on excise duty in Abuja.

In May 2022, Buhari had approved the collection of a 5 percent excise duty on telephone recharge cards and vouchers.

Speaking on the issue at the press briefing on Tuesday, Pantami said Buhari had on March 6 approved the exemption of the digital economy sector on from the 5 percent excise duty because it would harm Nigerians.

He said 41 categories of taxes, levies, and charges are already in the digital economy sector; hence there is no justification for an additional excise.

“There is no need for excise duty in the telecom sector because the industry is already heavily taxed up to 41 taxes,” the minister said.

“The sector has been contributing hugely to Nigeria’s economy; more tax burden destroys the industry.

“We increased revenue generated by 594 percent from N51 billion quarterly to N481 billion quarterly.

“This is the only sector where the prices of services have been reduced. There is no justification for the government to impose more burden on its poor Citizens.

“Many micro, small, and medium enterprises (MSMEs) and small medium enterprises (SMEs) depend on the sector for survival; if the tax is increased, the impact will take a toll on these businesses.”