The suspended excise tax on telecommunication services has reappeared in the 2022 Finance Bill currently being considered by the National Assembly.
If approved, Nigerians will have to pay more for calls, data and other telecom services from next year.
While the duty was also captured in the 2021 Finance Law, the Finance Ministry’s moves to implement it earlier this year were slammed by Communication and Digital Economy Minister Isa Pantami.
Pantami criticized the timing and process of imposing the tax on the telecoms industry, arguing that part of the responsibility of a responsive government is not to add to the problems of citizens.
Extended coverage: In the 2022 Finance Bill that President Muhammadu Buhari transmitted to the House of Representatives on Monday, the government not only reaffirms its commitment to implement the excise tax on telecommunication services, but also broadens the coverage of the law. to other services. The bill says:
- “All services, including but not limited to telecommunication services, provided in Nigeria shall be subject to excise duty at the rates specified in the tax column in the Schedule, as prescribed by the President by Order pursuant to section 13 of this Law”.
The basics: Finance, Budget and National Planning Minister Zainab Ahmed said the proposed bill is based on five key policy drivers which are:
- Tax Equity
- Climate change
- Job Creation/Economic Growth
- Tax Incentive Reform
- Income Generation/Tax Administration.
According to the Minister, other aspects of the Finance Bill include taxable assets, loss exclusion and business asset replacement.
The 2022 Finance Bill proposed amendments to some tax laws, such as the capital gains tax, the corporate income tax, the Special Customs Tariff Law, the Federal Internal Revenue Service Law, the personal income tax and the Law on Stamps and Stamps.
In case you missed it: Recall that the Minister of Finance, Zainab Ahmed, had announced in August this year the implementation of a 5% excise tax on telecommunications services. However, this was rejected by the Minister of Communications and Digital Economy, Pantami. Pantami later announced the suspension of the implementation, noting that excessive and multiple taxes were already overburdening the telecommunications industry.