The Federal Government said it has concluded plans to implement the new tariff hike of five percent on calls and data, despite huge criticisms from stakeholders and consumers.
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, who disclosed this on Thursday said the government would begin the implementation of a five percent excise duty tax on all voice calls, SMS and data services, in addition to the existing 7.5 percent Value Added Tax (VAT) paid for goods and services across all sectors of the economy.
She made the disclosure during a stakeholders’ meeting organised by the Nigerian Communications Commission (NCC), and the telecoms industry regulator
At the meeting, Ahmed, who was represented by the Assistant Director, Tax Policy, Federal Ministry of Finance, Budget and National Planning, Musa Umar, noted: “The five percent excise duty has been in the Finance Act 2020, but has never been implemented.
“Henceforth, the five percent excise duty will be collected by telecom operators and payment made to the Federal Government on a monthly basis, on or before 21st of every month.”
Yunusa Tanko Abdullahi, Special Adviser, Media & Communications to the Minister, said in a statement that “against the comments by Dr. Isa Ali Pantami, Minister of Communication and Digital Economy, concerning the five percent excise duty hike on telecoms services, it is worth noting that there was a circular stating the planned hike which was addressed to the communication minister and other relevant ministries and agencies of government.
“The circular referenced No. F. 17417/VI/286 dated 1st March 2022, and titled, ‘Approval for Implementation of the 2022 Fiscal Policy Measures and Tariff Amendments’, was addressed to different ministers, including the Minister, Communications and Digital Economy and other heads of government agencies.
“The circular was addressed to the Secretary to the Government of the Federation, Attorney-General of the Federation, Ministers of Industry, Trade and Investment; Agriculture and Rural Development, and Mines and Steel and Development.
Others are Ministers of Health, Aviation, Information and Culture, Budget and National Planning.
“Other heads of agencies copied in the circular are Accountant- General of the Federation, Comptroller-General of Customs, governor of the Central Bank of Nigeria, Executive Chairman of the Federal Inland Revenue Service and the Director-General of the Raw Materials Research and Development Council.
“Others are the Executive Secretary of Nigerian Export Promotion Council (NEPC) and the Executive Secretary of the Nigerian Investment Promotion Commission”.
According to Yunusa, part of the circular reads: “This is to convey that His Excellency Mr. President has approved Supplementary Protection Measures (SPM) for implementation of ECOWAS Common External Tariff (CET) 2022-2026 and excise duties on non-alcoholic beverage, cigarettes and tobacco products as well as telecommunication services with effects from 1st April 2022”.
The circular signed by Ahmed reads: “A grace of ninety (90) days commencing from the date of implementation of this circular i.e April 1, 2022, shall be granted to all importers who had opened Form M and must have entered into irrevocable trade agreement before the coming into effect of this circular to process and clear these goods at the prevailing duty rates.
“However new import transactions entered from the 1st of April 2022 will be subjected to the new import duty regime,” she said.
Culled from the nation
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