FG removes 5% telecom tax on voice, data services

The Federal Government has announced the removal of the 5% excise tax on telecommunications services, a policy reversal expected to ease cost pressures on millions of mobile users.

The levy, introduced under the Muhammadu Buhari administration, was designed to cover voice calls and data usage but faced heavy criticism from industry stakeholders and consumer groups.

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According to a statement shared on the X handle of the National Orientation Agency, NOA, Aminu Maida, Executive Vice Chairman of the Nigerian Communications Commission (NCC), confirmed that President Bola Tinubu ordered the tax revocation during deliberations on the newly passed Finance Act.

The decision is projected to provide relief for over 171 million active telecom subscribers nationwide, many of whom have struggled with a 50% tariff hike implemented earlier this year.

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The 5% excise duty which was first announced in 2022 faced widespread criticism from both telecom operators and consumer rights groups, with government citing revenue generation as reason for the tax.

Telecom operators, under the umbrella of the Association of Licensed Telecom Operators of Nigeria, ALTON, also warned against the policy.

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