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Nigerians To Pay More For Call, SMS, And Data Services – FG

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The Federal Government is set to slam a five per cent tax inclusive excise duty on telecommunications services in Nigeria. This means Nigerians have to pay more.

This means that Nigerians would pay a 12.5 per cent tax on all telecommunications services including calls, SMS and data services. The Minister of Finance Budget and National Planning, Zainab Ahmed, said this in Abuja on Thursday, July 28.

The News Agency of Nigeria (NAN) reports that the five per cent will be added to the already existing 7.5 per cent Value Added Tax (VAT) on telecommunications services.

Ms Ahmed, who was represented by the Assistant Chief Officer of the Ministry, Frank Oshanipin, said the five per cent excise duty has been in the Finance Act 2020 but was not implemented because of the government’s engagement with stakeholders.

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“Payments are to be made on monthly basis, on or before the 21st of every month. The duty rate was not captured in the Act because it is the responsibility of the president to fix the rate on excise duties and he has fixed five per cent for telecommunication services which include GSM.

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Gbenga Adebayo, chairman, of the Association of Licensed Telecom Owners of Nigeria (ALTON), said the burden would be on telecommunications consumers.

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According to him, “It means that subscribers will now pay 12.5 per cent tax on telecom services, we will not be able to subsidise the five per cent excise duty on telecom services. This is as a result of the 39 multiple taxes we already paying coupled with the epileptic power situation as we spend so much on diesel.”

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