FG directs telcos to begin collection of 5% tax on data, calls
Minister of Finance, Budget and National Planning, Zainab Ahmed, said collection of the duty even though not currently being implemented, is provided for in the Finance Act 2020.
She said “Henceforth, the five per cent excise duty will be collected by telecom operators and payment made to the federal government on a monthly basis, on or before 21st of every month.”
A statement by the media aide to the minister, Tanko Yunusa, quoted her to have stated this at a stakeholders’ meeting organised by the Nigerian Communications Commission (NCC).
According to the statement, Ahmed, who was represented by the Assistant Director, Tax Policy, in the ministry, Musa Umar, pointed out that there was a circular indicating the planned hike which was addressed to the communication minister and other relevant ministries and agencies of government.
The circular with referenced no. F. 17417/VI/286 dated 1st March 2022, and titled “Approval for Implementation of the 2022 Fiscal Policy Measures and Tariff Amendments” was addressed to different Ministers, including Minister, Communications and Digital Economy and other heads of government agencies.
The circular was addressed to The Secretary To The Government of The Federation, Attorney-General of The Federation, Ministers of Industry, Trade and Investment, Agriculture and Rural development, Mines and Steel and Development, the statement added.
The proposed excuse duty has been met with criticism from consumers and stakeholders, including the Minister of Communications and Digital Economy, Isa Pantami.
When implemented, Nigerians will pay 12.5 per cent tax on calls and data, 7.5 per cent being the Value Added Tax (VAT) already being charged.
