Digital Economy Sector Exempted From 5% Excise Duty- Minister

The Minister of Communications and Digital Economy, Isa Pantami, has announced that the President Muhammadu Buhari has approved the exemption of the digital economy sector from five per cent excise duty.

Pantami made this known to journalists on Tuesday during the briefing by the Presidential Review Committee on Excise Duty in Abuja.

Recall that on September 5, 2022, the Minister had suspended the imposition of a five per cent excise on the sector.

According to him,  “41 categories of taxes, levies and charges are already in the digital economy sector; hence there is no justification for an additional excise.

“There is no need for excise duty in the telecom sector because the industry is already heavily taxed up to 41 taxes.

“The sector has been contributing hugely to Nigeria’s economy; more tax burden destroys the industry.

“We increased revenue generated by 594 per cent from N51 billion quarterly to N481 billion quarterly.”

He added, “This is the only sector where the prices of services have been reduced.

“There is no justification for the government to impose more burden on its poor citizens.”

Pantami added, “Many MSMEs and SMEs depend on the sector for survival; if the tax is increased, the impact will take a toll on these businesses.

“To this end, on March 6, President Muhammadu Buhari approved the exemption of the digital economy sector on the five per cent excise duty because it would harm the Nigerian citizens.”

In his remarks, the Executive Vice Chairman of the Nigerian Communications Commission, Prof. Umar Danbatta, reiterated the commission’s commitment to improving the telecom industry.

Danbatta said the reduction of data had been the main target of the commission.

The EVC NCC added that the average one gigabit of data has dropped to N335 from N350.

Accordingly, he called on Nigerians to report mobile network operators charging exorbitant prices for data.