FGN set to implement new tariff hike on data, calls

FGN set to implement new tariff hike on data, calls
Minister of Finance, Budget and National Planning, Zainab Ahmed.

FGN set to implement new tariff hike on data, calls

The Federal Government of Nigeria (FGN) said it would be implementing a new tariff hike of five per cent on calls and data.

The Minister of Finance, Budget and National Planning, Zainab Ahmed, who disclosed this said the government would start the implementation of a five per cent excise duty tax on all voice calls, SMS and data services, in addition to the existing 7.5 per cent 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 on Thursday.

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At that meeting, the minister who was represented by the Assistant Director, Tax Policy, Federal Ministry of Finance, Budget and National Planning, Musa Umar, noted that the five per cent excise duty has been in the Finance Act 2020, but has never been implemented.

“Henceforth, the five per cent excise duty will be collected by telecom operators and payment made to the federal government on a monthly basis, on or before the 21st of every month,” the minister said.

Yunusa Tanko Abdullahi, Special Adviser, Media & Communications to the Minister in a press statement said:

“Against the comments by Dr Isa Ali Pantami, Minister of Communication and Digital Economy, concerning the five per cent 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; 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”.


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