Nigerians will soon begin paying 12.5% tax as the Federal Government prepares to apply a 5% inclusive excise duty on telecommunications services in Nigeria.
This was made known by Mrs. Zainab Ahmed, Minister of Finance, Budget, and National Planning, on Thursday in Abuja at a stakeholders’ roundtable on the application of the excise duty on telecommunications services in Nigeria.
According to Zainab, who was represented by the Assistant Chief Officer of the Ministry, Mr. Frank Oshanipin, the Finance Act 2020 included a five percent excise fee that was never put into effect.
She said the delay on its implementation was as a result of government engagement with stakeholders.
“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,” she said.
Mr Gbenga Adebayo, Chairman, Association of Licensed Telecom Owners of Nigeria (ALTON) said the burden would be on telecommunications consumers.
“It means that subscribers will now pay 12.5 per cent tax on telecom services, we will not be able to subsidise the five percent excise duty on telecom services.