The Federal Ministry of Finance Budget and National Planning has resolved to go ahead with the planned implementation of a 5% hike on call and data tariff despite protests.
The development was reported by the Nation which also states that the Minister of Communication and Digital Economy Prof. Isa Ali Pantami has led protests against the planed increase.
A statement from the Federal Ministry of Finance Budget and National Planning noted the tariff hike will go on despite resistance from the Minister.
The statement maintained that the government will begin “the implementation of 5% excise duty tax on all voice calls, SMS and data services, in addition to the existing 7.5% Value Added Tax (VAT), paid for goods and services across all sectors of the economy”.
Minister of Finance Budget and National Planning Mrs Zainab Ahmed made the disclosure at a stakeholders’ meeting organised by the Nigerian Communications Commission (NCC), the telecoms industry regulator.
Ahmed, who was represented by the Assistant Director, Tax Policy, Federal Ministry of Finance, Budget and National Planning, Musa Umar, said: “Henceforth, the five percent 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.”
Reacting to Pantami’s resolve to resist the tariff hike, Ahmed noted: “The 5% excise duty has been in the Finance Act 2020, but has never been implemented.
“A circular stating the planned hike was addressed to the Communications and Digital Economy Minister and other relevant ministries and agencies of government.”
The Finance Act, 2020 introduced ‘Telecommunication Services’ provided in Nigeria to be liable to excise duty under Section 21 (2) of the Customs and excise tariff etc. (Consolidation) Act, CAP. C49, LFN 2004.
The Finance Minister emphasised that “all stakeholders have by that singular provision been aware of the Act.
“The excise duty on telecommunication services provided in Nigeria introduced through the Finance Act, 2020 with statutory enactment on 1st January, 2021 is yet to be implemented till date”.
The reason for the delay in implementing the tariff hike, she explained, is: “To ensure a reasonable transition period before the implementation of the new tax, as well as providing clarity to all stakeholders on implementation modalities.
“Mrs. Ahmed had vide Circular dated 1st March, 2022 informed the Nigeria Customs Service (NCS) and other heads of government ministries, departments and agencies (MDAs), including the Federal Ministry of Communication and Digital Economy about Mr. President’s approval of the implementation of the five percent excise duty on telecommunication services with effect from 1st June, 2022,” the statement reads.
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