Telecoms: Why Government insists on implementing 5 percent  tariff hike on calls, data —Official

*The Federal Ministry of Finance, Budget and National Planning explains the proposed five percent excise duty will be collected by telecoms operators for remittance to the Federal Government monthly

Isola Moses | ConsumerConnect

Sequel to recent groundswell of criticisms from industry stakeholders and consumer groups trailing the proposal across the country, the Federal Government has insisted on implementation of the proposed five percent tax hike on telephone calls and data.

ConsumerConnect had reported the government earlier explained that proposal had been a provision in the Finance Act 2020.

When the hike is implemented, Nigerian telecoms consumers are required to pay 12.5 percent tax on calls and data, as against 7.5 percent being Value Added Tax (VAT) currently being charged.

Mr. Tanko Yususa, media aide to Mrs. Zainab Ahmed, Honourable Minister for Finance, Budget and National Planning, in a statement issued in Abuja, FCT, noted that the five percent Excise Duty on phone calls and data is a revenue driver for the government.

The statement said the Minister gave the government’s position on the controversial issue at  a recent stakeholders’ meeting the Nigerian Communications Commission (NCC) organised.

Mrs. Ahmed, represented at the forum by Musa Umar, Assistant Director, Tax Policy in the Ministry, also said: “The five percent excise duty has been in the Finance Act 2020, but has never been implemented.

“Henceforth, the five percent excise duty will be collected by telecoms operators and payment made to the Federal Government on a monthly basis, on or before 21st of every month.”

According to her, that there was a circular stating the planned hike was addressed to the Minister for Communications and Digital Economy, and other relevant ministries and agencies of government.

Ahmed insisted that the circular 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 for Communications and Digital Economy, and other heads of government agencies.

It is recalled Prof. Isa Ali Pantami, Honourable Minister for Communications and Digital Economy, recently disclosed that the Minister was not informed about the proposed implementation of the tariff hike on calls and data for telecoms consumers.

However, the statement noted Mrs. Ahmed said the circular to that effect was also addressed to the Secretary to the Government of The Federation (SGF), Attorney-General of the Federation, Ministers of Industry, Trade an Investment, Agriculture and Rural development, Mines and Steel and Development.