‘President’s approval supersedes all’ — Pantami insists telecom sector exempted from 5% tax

Isa Pantami, minister of communications and digital economy, says the exemption of the telecommunications sector from the proposed 5 percent excise duty still stands.

The federal government recently unveiled the new fiscal policy measures (FPM) outlining the rates of excise duties for the current year.

The new FPMs — approved by President Muhammadu Buhari — include supplementary protection measures (SPM), revised excise duty rates, and green taxes.

The FPMs also imposes a 5 percent excise duty on mobile telephone services (GSM), fixed telephone, and internet services — postpaid and prepaid.

Reacting to this in a statement on Wednesday, Pantami said the ministry’s attention was drawn to a document circulating online, titled, ‘Approval for the Implementation of the 2023 Fiscal Policy Measures and Tariff Amendments’, allegedly emanating from a government institution.

He said the document was a “misconception” and should be disregarded.

The minister also assured telecoms operators that the president’s approval on tax exemption still stands.

PRESS STATEMENT

RE: 5% EXCISE DUTY FOR TELECOMMUNICATIONS SERVICES

The attention of the Honourable Minister of Communications and Digital Economy, Professor Isa Ali Ibrahim (Pantami) has been drawn to a document circulating online titled; Approval for the implementation of the… pic.twitter.com/JWAHpCvXsj

— Fed. Min. of Comms, Innovation & Digital Economy (@FMCIDENigeria) May 3, 2023

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“The office of the honourable minister of communications and digital economy, hereby, assures the sector and the general public that the president’s approval supersedes all other declarations regarding the issue and we stand by it,” the statement reads.

“Any contrary proclamation should be disregarded by the general public.”

In July last year, Zainab Ahmed, minister of finance had said the government would begin the implementation of the 5 percent inclusive excise duty on telecommunications services, which was introduced in the 2020 finance act.

Pantami, however, faulted the timing and process of implementation, saying he was not informed.

Ahmed had insisted that the federal government would go on with the implementation of the proposed telecommunications tax.

She said all relevant agencies, including the communications ministry, were informed of the implementation of the tax as approved by Buhari.

In September 2022, Pantami announced that the excise duty on telecommunications services had been suspended.

Two months ago, he said Buhari had approved the exemption of the telecommunications sector from the proposed 5 percent excise duty.