FG Poised To Generate N160bn From Call, Data, Beverages Taxes In 2023, Stakeholders Kick
The Federal Government has revealed that it is set to generate N160.46bn from excise duty on telecommunication services and beverages as the implementation will begin in 2023.
This was revealed by the Minister of Finance Budget and National Planning, Zainab Ahmed, during a stakeholders’ forum on the implementation of excise duty on telecommunications services in Nigeria.
The amount, however, assumes that the revenue of the telcos would be static. But in real terms, it could either be higher or lower depending on economic fundamentals in 2022.
The government seems resolute despite backlashes from the Minister of Communications and Digital Economy, Isa Pantami, the Manufacturers Association of Nigeria, and other stakeholders.
According to a recent report, Pantami, during the maiden edition of the Nigerian Telecommunications Indigenous Content Expo organised by the Nigeria Office for Developing the indigenous Telecom Sector, slammed the five per cent tax on telecom services.
He said, “The Ministry of Communications and Digital Economy is not satisfied with any effort to introduce excise duty on telecommunication services.
“Beyond making our position known, we will go behind the scenes and go against any policy that will destroy the digital economy sector. We will go to any extent to legitimately and legally defend its interest.”
Zainab Ahmed, who spoke through Assistant Chief Officer of the Ministry, Mr. Frank Oshanipin, said, “The duty rate was not captured in the Act because it is the responsibility of the President to fix the 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.”
The finance minister also said the tax would be implemented soon but doubts have since risen concerning whether the excise duty will be implemented at all.
According to the Chairman, Association of Licensed Telecom Owners of Nigeria, Gbenga Adebayo, telecom consumers will bear the burden of the additional 5 per cent tax.