The Minister of Communications and Digital Economy, Professor Isa Pantami, said today that his ministry rejects plans by the federal government to impose a 5 percent tax on all telecommunications services such as calls, SMS, and data services.
Pantami said his ministry was not consulted before the decision was reached, and it was unfair to impose such a tax on an industry that was already burdened with other taxes and already contributing about 17 % to the country’s revenue.
He promised to work behind the scene in a bid to reverse the plan.
The minister made the statement at the maiden edition of the Nigerian Telecommunications Indigenous Content expo, which kicked off today at the Landmark Event Centre, Victoria Island, Lagos.
The two=day Expo was organised by the Nigerian Communications Commission (NCC) and the recently established Nigerian Office for Developing the Indigenous Telecom Services (NODITS).
When asked by eWorldnews if, apart from the public rejection of the Federal government plan to impose a 5 % excise duty on telecom services, he would take steps to reverse the plan, the minister said categorically: “We will, there is no doubt, we will!”
He went further to say: “I was not consulted; I only heard the announcement. I think there is something questionable about it. We are on the same page with the National Assembly, and they are members of the committee. Beyond making our opinion known, we will go behind the scenes to ensure that we take any legitimate and legal steps to stop any plan against the interest of the ICT industry.
According to Pantami, he has the president’s authority, as minister of communications and digital economy and the constitution, to question a decision that would affect his ministry negatively without him being consulted.
He said the ICT industry already contributes vast sums to the national revenue through the payment of 7.5 percent in Value Added Taxes and another 2.5 percent of its revenue to the NCC annually.
Pantami said excise duties are imposed when you want to discourage consumption of specific goods and services such as drinks, cigarettes, and their likes.
When the federal government, through the office of the minister of fiancé and budget, Mrs. Zainab Ahmed, made the announcement last week, stakeholders in the ICT industry, the Association of Licensed Telecoms Operators of Nigeria (ALTON), Association of Telecommunications Companies of Nigeria (ATCON) kicked against it, describing it as antipeople, provocative, strange, insensitive and irresponsible.
They had planned to pass the burden to consumers of telecom services should the FG carry out the plan.
While unveiling the plan, Mrs. Ahmed urged stakeholders to support the implementation of the 5% exercise duty on telecommunications services, saying that the decision was informed by the dwindling revenue of the Federal government from oil and gas.
