Buhari exempts digital economy sector from five per cent excise duty payment
03/22/2023 16:53 in News Update

President Muhammadu Buhari has approved the exemption of Digital Economy sector from five per cent excise duty payment to lessen the suffering of Nigerians.

The Federal Government had, on September 5, 2022, suspended the duty on telecommunications services, following intervention of the Minister of Communications and Digital Economy, Isa Ali Pantami, who has always argued that the sector was overburdened by multiple taxation.

Consequently, the Federal Government raised a committee to look into the matter and revert to the President.

Unveiling outcome of the Presidential Review Committee on Excise Duty in the Digital Economy Sector, on 21st March 2023, in Abuja, the minister recalled that the duty was imposed without due consultation with the ministry and relevant stakeholders, hence his appeal for its suspension.

He said within the telecommunications subsector alone, there are 41 categories of taxes and charges.

Pantami also said he stopped telecoms operators from reviewing charges upward due to his understanding that the move would further impoverish Nigerians.

He clarified that the negative impact of the excise duty on the sector would be felt by others that leverage telecommunication services, who will eventually transfer the burden to the people.

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