CITAD rejects increase in excise duty on telecommunication services 

The Centre for Information Technology and Development (CITAD) has rejected a plan by the federal government to increase excise duty on telecommunication services by 5 percent and raising the tax to 12.5 percent.

The organisation said the development is capable of grounding the achievement of National Digital Economy Policy and Strategy, (2020-2030).

The executive director of the centre, Y.Z Ya’u, stated this Wednesday while addressing newsmen in Kano. He said the increment is counter-productive to the Nigeria’s contemporary realities and telecoms sector that has contributed greatly to the Nigeria’s Gross Domestic Product, (GDP).

Blueprint reports that the Minister of Finance, Budget and National Planning, Zainab Ahmed, who was represented by an assistant director, Tax Policy, Federal Ministry of Finance, Budget and National Planning, Musa Umar, announced the plan of the ministry to begin the implementation of five per cent excise duty on telecom services, which she claimed has been in the Finance Act: 2020 but has not been implemented. 

She said the finance ministry has ordered telecom operators to begin the collection from telecom subscribers in all voice calls, Short Message Service (SMS), and data services they render to telecom operators and that after such collection, payment must be made to the federal government every month, on or before 21st of every month.

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