The Chairman, Association of Licensed Telecom Owners of Nigeria, (ALTON), Gbenga Adebayo, says that the additional five per cent tax on telecom services in Nigeria would be a burden on telecom consumers.
He stated that telcos would not be able to subsidize the five per cent excise duty tax due to “39 multiple taxes we already paying coupled with the epileptic power situation as we spend so much on diesel.”
The Federal Government on Thursday announced plans to implement a five per cent excise duty tax on telecoms services in Nigeria. This would bring the total consumption tax on telecom services to 12.5%.
The Minister of Finance Budget and National Planning, Zainab Ahmed, stated this at the forum which was organised by the Nigerian Communications Commission.
Ahmed, who was represented by the Assistant Chief Officer of the Ministry, Mr Frank Oshanipin, said the five per cent excise duty was in the Finance Act, 2020 but had not been implemented.
She said, “Payments are to be made on monthly basis, on or before 21st of every month.
“The duty rate was not captured in the Act because it is the responsibility of the President to fix rates on excise duties and he has fixed five per cent for telecommunication services which include GSM. 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.”
ALTON Chairman said, “It means that subscribers will now pay 12.5 per cent tax on telecom services, we will not be able to subsidise the five per cent excise duty on telecom services.
“This is because of the 39 multiple taxes we already paying coupled with the epileptic power situation as we spend so much on diesel.
The Executive Secretary, ALTON, Mr Gbolahan Awonuga, added that the five per cent excise duty was unhealthy for the telecoms industry as telecom service providers already pay two per cent of their annual revenue to the NCC.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
