The Federal Government has suspended the implementation of the five percent excise duty charge earlier proposed on telecom facilities in the country.
This was disclosed by the Minister of Communications and Digital Economy, Prof. Isa Pantami, on Monday in Abuja when he inaugurated a committee to review the five percent exercise duty.
On July 28, the federal government said five percent would be added to the already existing 7.5 percent Value Added Tax (VAT) on telecommunications services.
Speaking during the inauguration of the committee, Pantami said that President Muhammadu Buhari granted his prayer for the immediate suspension of the 5 per cent excise duty.
Pantami said: “It is because of this that the president had granted my prayers. He approved that a committee be constituted to look into the matter carefully and advise him accordingly.
“The president has appointment me to be his eyes and ears in the sector. It is my responsibility to ensure we are just and fair to the operators, government and most importantly the consumers.”
On why he kicked against the excise duty, he said in spite the achievements of the sector, it also had its challenges, which could be a barrier in its development in the next few years to come.
“As of today, the ICT sector is over burdened by so many categories of taxes to the extend that there are 41 categories of taxes at the federal and state level, particularly in the telecom sector.
“Beside, these taxes are multiple taxes. The same taxes being collected at the federal level is also what the states are insisting be paid to them.
“If care is not taken, this is what will jeopardise the achievements and gains that we have recorded so far in the sector,” Pantami said.
