Nigerians will soon begin to pay a 12.5% tax on telecommunication services, as the Federal Government moves to apply a 5% inclusive excise duty on such services in Nigeria.
This was made known by the Minister of Finance, Budget, and National Planning, Mrs. Zainab Ahmed in Abuja, at a stakeholders’ roundtable on the application of the excise duty on Telecommunications Services in Nigeria, organised by the Nigerian Communications Commission (NCC).
The implication of this is that the existing 7.5% Value Added Tax (VAT) on Telecom Services will be increased by 5%.
According to the Minister who was represented by the Assistant Chief Officer of the Ministry, Mr Frank Oshanipin, the Finance Act 2020 included a 5% excise fee that was never put into effect.
She said the delay in its implementation was a result of the Government’s engagement with stakeholders.