President Tinubu Scraps 5% Excise Duty on Telecom Services
President Tinubu Scraps 5% Excise Duty on Telecom Services
President Bola Tinubu has permanently removed the controversial 5% excise duty on telecommunications services in Nigeria. The Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, confirmed this development during a media briefing in Abuja.
Key Details of the Removal:
From Suspension to Scrapping: The excise duty, which applied to mobile voice and data services, was initially suspended by President Tinubu in July 2023 through an executive order. The new development confirms its complete removal under the recently revised national tax laws.
Reason for the Removal: Dr. Maida revealed that President Tinubu was adamant about not placing an additional financial burden on Nigerians. The move is part of the administration's broader tax reform initiatives aimed at easing cost pressures on consumers and fostering a more business-friendly environment.
Historical Context: The 5% excise duty was first introduced in 2022 under the previous administration as part of the Finance Act. It faced strong opposition from both industry stakeholders and the public, who argued that it would increase the cost of essential digital services and harm the telecom sector, which was already dealing with multiple taxes.
Impact on the Sector: The decision is expected to be a relief for over 172 million active telecom subscribers in the country. It is also seen as a positive step for the telecommunications industry, a key driver of Nigeria's digital economy, as it removes a major tax burden and is expected to encourage further growth and investment.
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