- Rejection of 5% Excise Duty: The Association of Telecommunications Companies of Nigeria (ATCON) has rejected the proposed reintroduction of a 5% excise duty on the telecommunications sector.
- Previous Suspension: President Bola Tinubu suspended the 5% excise tax on telecommunication services on July 6, 2023, to alleviate tax hike burdens on businesses and households.
- New Tax Bill: The proposed Nigeria Tax Bill 2024 includes excise duty on telecommunications, gaming, betting, and lotteries, with the excisable amount based on service provider charges.
- Industry Concerns: ATCON warns that the new tax will increase consumer costs and stifle growth in Nigeria’s digital economy, particularly amid ongoing economic challenges.
The Nigerian telecommunications industry has strongly rejected the government’s plan to reintroduce a 5% excise duty on telecommunications services. This proposed policy change comes after President Bola Tinubu suspended the 5% excise tax on telecommunication services just last year to alleviate the negative impact of tax hikes on businesses and households.
The Nigeria Tax Bill 2024, currently before the National Assembly, aims to reinstate the excise duty on telecommunications, gaming, betting, and lotteries. The excisable amount will be based on the service provider’s charges, whether monetary or otherwise. ATCON President Tony Emoekpere expressed concern over the timing of the proposal, citing the industry’s ongoing push for a tariff increase to cope with rising operational costs.
Emoekpere emphasized that the industry had received assurances from the former minister that the issue was settled, making the re-emergence of the proposal alarming. He stressed that the price hike would bring no benefit to the industry, and instead, would likely lead to higher costs for consumers and stifle growth in a vital sector of Nigeria’s digital economy.
