- The Nigerian Federal Government plans to implement excise duty on telecommunication services to increase revenue.
- This decision is outlined in the 2024-2026 Medium-Term Expenditure Framework and Fiscal Strategy Paper.
- President Bola Tinubu had previously suspended the implementation of a five percent excise duty tax on telecoms services.
- The government intends to implement the excise duty despite the suspension.
- The government also mentioned the possibility of raising the Value Added Tax (VAT) rate from 7.5 percent to 15 percent, as advised by the International Monetary Fund.
- Efforts will be made to improve VAT coverage and collection efficiency through nationwide registration, monitoring, and the use of technology.
- Telcos have expressed concerns about the excise duty, stating that they may pass the cost onto their subscribers.
Source: punchng.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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