By Gift Olivia Samuel, The Sight News
ABUJA: President Muhammadu Buhari, has approved the exemption of the Digital Economy sector from paying the five percent excise duty on telecommunications services in Nigeria.
The Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim Pantami made this known on Tuesday at a press briefing in Abuja by the Presidential Review Committee on Excise Duty in the Telecom Industry.
The Minister noted that the exemption, was as a result of the strength of the arguments presented to President Buhari, that the implementation will increase the suffering of the citizens.
He further disclosed that within the telecommunications subsector, there are currently 41 categories of taxes, levies and charges, adding that this could arguably be a global record.
He also emphasized that there is no justification for adding more burden on the same sector that is doing well when it comes to the economy.
Commenting on the major arguments of the Presidential Committee, he stated that, “The Committee argued that the sector has been contributing significantly to the Nigerian economy, adding more burden on it could destroy the sector.
“The growth of the Digital Economy Sector is amazing. In the last three years, we have set three new unprecedented records of contributions to the GDP. In the first quarter of 2020, the ICT sector alone contributed 14.07 per cent. In the second quarter of 2021, the sector contributed 17.97% and in the second quarter of 2022, the sector contributed 18.44 percent, another unprecedented record.
“It is the fastest growing sector of the economy without government intervention and subsidies. It has been contributing more than enough, and instead of putting more burden on one sector, why not look at others that are not contributing so that we can encourage them to contribute.
“All other sectors have been increasing the prices of their goods and services except in our sector. This is the only sector that our price has been reducing, in some instances by more than 70 per cent”, he said.
Furthermore, he explained that President Buhari strongly insisted that “other sectors that are not contributing enough are to be challenged to improve revenue generation for the government and not the sector that has already increased revenue generation by 594 per cent within only three years, which is unprecedented in the history of Nigeria”.
He appreciated President Buhari for approving the exemption on behalf of the citizens, to enable them continue to enjoy telecom services at a very affordable rate, and expressed hopes that the approval will make the citizens more excited.
For his part, the Executive Vice Chairman of the Nigerian Communications Commission, NCC, Prof. Umar Garba Danbatta, commended the work done by the Committee as well as the steadfastness of the Minister for remaining committed to the progress of the Digital Economy and the telecommunications sector in particular.
He added that the approval by the President is another major step towards the sustenance of the momentum towards driving the Digital Economy and the telecom sector to greater heights.
Members of the Presidential Review Committee on Excise Duty Chaired by the Minister includes; the Minister of Finance, Budget and National Planning, Executive Vice Chairman of the Nigeria Communications Commission (NCC), Chairman of the Federal Inland Revenue Services, and Representatives of Mobile Network Operators.
