FG Set To Implement New Tariff Hike On Data, Phone Calls

The federal government is set to implement a new tariff hike on data and calls.

This was confirmed by the Minister of Finance, Budget, and National Planning, Zainab Ahmed.

According to Ahmed, this will start with the implementation of a percent excise duty tax on all voice calls, SMS, and data services.

A statement from the minister’s Special Adviser, Media & Communications, Yunusa Tanko Abdullahi, added that this is “in addition to the existing 7.5 percent Value Added Tax (VAT), paid for goods and services across all sectors of the economy.”

The government made the disclosure on five percent excise duty during a stakeholders’ meeting, organised by the Nigerian Communications Commission (NCC), the telecoms industry regulator.

“At that meeting, Mrs. Zainab Ahmed, Honourable Minister of Finance, Budget and National Planning, who was represented by the Assistant Director, Tax Policy, Federal Ministry of Finance, Budget and National Planning, Musa Umar, noted: ‘The five percent excise duty has been in the Finance Act 2020, but has never been implemented.

Henceforth, the five percent excise duty will be collected by telecom operators and payment made to the federal government on a monthly basis, on or before 21st of every month,’”

the statement read further.

READ ALSO: Telecommunication Companies Add New Tax On Telephone Calls

Yunusa also said that “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, and; 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.”