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Why FG suspended new tax on telecom services

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The Minister of Communications and Digital Economy, Isa Pantami, on Monday revealed that the federal government has suspended the planned introduction of excise duty on telecommunication services in the country.

Pantami who revealed this at the inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector in Abuja, said the implementation of the tax regime would increase the cost of telecommunication services in the country.

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At the meeting, Pantami said the move was suspended because the telecommunications sector was already overburdened by multiple taxations.

He said the implementation of the tax regime would increase the cost of telecommunication services in the country.

The federal government had on August 8 announced its intention to introduce taxes on telecommunication services and beverages effective from 2023 in a bid to boost the revenue accruing from the non-oil sector.

Recall that the Minister had in August opposed the plan by the federal government to impose five per cent excise duty on telecommunications services in the country.

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