Digital Economy Is Exempt From The 5% Excise Duty

Isa Pantami, Minister of Communications and Digital Economy, said that President Muhammadu Buhari (retd.) has approved the exemption of the digital economy sector from 5% excise charge.

Pantami revealed this to journalists on Tuesday during the Presidential Review Committee on Excise Tax briefing in Abuja.

The Minister postponed the imposition of a 5% excise on the sector on September 5, 2022.

“41 categories of taxes, levies, and charges are already in the digital economy sector,” he added, adding that an extra excise is unnecessary.

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

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“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 further stated, “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, Umar Danbatta, reiterated the commission’s commitment to improving the telecom industry.

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

He added that the average one gigabit of data has dropped to N335 from N350.
He, however, called on Nigerians to report mobile network operators charging exorbitant prices for data.

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