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Tinubu Scraps 5% Telecom Tax On Voice, Data Services

Tinubu Scraps 5% Telecom Tax On Voice, Data Services

 

September 11, (THEWILL) — President Bola Tinubu has scrapped the proposed five per cent excise duty on telecommunications services in Nigeria, in a move aimed at reducing the cost of calls and internet access for millions of users.

The Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, confirmed the development on Thursday in a post on X.

The Federal Government had first announced the excise duty in July 2022 as part of efforts to expand its revenue base.

The levy, which was to apply to mobile voice and data services, drew strong opposition from industry stakeholders and consumer advocacy groups, who argued it would raise digital access costs and threaten operators already struggling with rising expenses.

Following widespread backlash, implementation was suspended on September 5, 2022, while a committee chaired by the then Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim Pantami, was set up to review the policy. By March 2023, the committee had recommended its complete removal.

Maida explained that President Tinubu went further to strike out the tax in the new tax laws, citing the President’s stance that Nigerians should not bear such an additional burden.

“With the removal, operators and subscribers are expected to enjoy some relief, even as the government balances revenue generation with policies that support growth and digital inclusion,” he said.

The development is expected to benefit over 171 million active telecom subscribers across the country, many of whom had already endured a 50 per cent tariff increase earlier this year.

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Source: TheWillNigeria | Read the Full Story…

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