The Federal Government plans to implement a 5% inclusive excise duty on telecommunications services in Nigeria, because the Nigeria’s revenue cannot run the nation’s financial obligations; so the government are shifting attention to non oil revenue according to the Minister of Finance Budget and National Planning.

The additional 5% tax would be passed on to telecommunications users. This development will make Nigerian telecommunications consumers to pay a 12.5% tax on usage of telecommunication services.

Zainab Ahmed; Minister of Finance Budget and National Planning. Credit: Google Images

Zainab Ahmed who is the Minister of Finance Budget and National Planning, made the announcement in Abuja at a stakeholders’ forum on the implementation of excise duty on telecommunications services in Nigeria which was held on Thursday, July 28.

The event was organized by the Nigeria Communication Commission (NCC).

According to Mr Frank Oshanipin, who represented Ahmed at the event said the 5% excise duty had been in the finance Act: 2020 but was not implemented because the government has been engaging with the stakeholders.

Stating that the responsibility of generating revenue to run government lies with every Nigerian.

She said;

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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 rate on excise duties and he has fixed five percent 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.

Featured Image: RODNAE Productions