Buhari’s 5% telecom tax exemption overrides new tax policy, says Pantami

By Business A.M.

Isa Pantami, minister of communications and digital economy, has insisted that the telecommunications sector is exempted from the five per cent excise duty slammed on the sector in the recently unveiled fiscal policy measures (FPM) outlining the rates of excise duties for the current year.

Reacting to the fiscal policy measure document recently released by the ministry of finance, budget and national planning, which listed the telecom tax as part of measures to be implemented in 2023, Pantami urged Nigerians and telecom industry stakeholders to disregard the policy document.

The minister, in a statement signed by his spokesperson,Uwa Suleiman, described the document as a misconception, emphasising that the exemption earlier granted by President Muhammadu Buhari in March supersedes the latest policy.

The statement partly read:  “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 2023 fiscal policy measures and tariff amendments allegedly emanating from a government institution.

“However, the Federal Government of Nigeria through the office of the Honourable Minister of Communications and Digital Economy, wishes to clarify the public misconception and press inquiry contained in the letter.”

Pantami recalled that President Buhari had, on March 21, 2023, approved the exemption of the telecommunications sector from the proposed excise duty in line with the recommendations of the Presidential Review Committee on excise duty in the digital economy sector.

This, the minister explained, is in order to sustain and enhance use of digital economy services and to further benefit from their positive impacts on the economy. He also maintained that besides overburdening the sector, imposing additional taxes on the sector will bring hardship to the citizens of the country