Minister of Communications and Digital Economy, Prof. Isa Pantami, has faulted the Federal Government’s plan to impose a 5% excise duty on telecom subscribers.
OduNews reports that the Minister of Finance announced that the government plans to impose a 5% tax on calls, texts and data by telecom subscribers in a bid to increase the country’s revenue.
Panatami however rejected the plan by faulting the timing and process of imposing the tax on the industry.
The Minister spoke in Lagos at the ongoing forum organised by the Nigeria Office for Developing the indigenous Telecom Sector (NODITS), an agency domiciled in the Nigeria Communications Commision (NCC).
“I have not been contacted officially. If we are, we surely will state our case. The sector that contributes to the economy should be encouraged,” Pantami said.
“You introduce excise duty to discourage luxury goods like alcohol. Broadband is a necessity.
“If u look at it carefully the sector contributes two per cent excise duty, 7.5 per cent VAT to the economy and you want to add, more” he said, adding hardship at this time cannot be tolerated. He urged the tax masters to expand the scope of other sectors that are not contributing to the economy to do so.
“We must come together and salvage the sector. Only telecom sector contributed 13per cent and you want to add more.”
According to him, further tax on the sector will impact on its contribution to the country’s Gross Domestic Product (GDP).
