Business
Telecoms Consumers To Challenge Proposed 5% Excise Duty In Court
Telecommunication subscribers in Nigeria under the aegis of the National Association of Telecoms Subscribers, have vowed to challenge the legitimacy of the proposed five per cent excise duty on telecoms services in court.
They said the excise duty on telecom services, which would translate to an extra five per cent consumption tax on calls, SMS, data, and other telecom services, was insensitive and would further impoverish consumers whose purchasing power had been weakened in recent times.
President of the association, Adeolu Ogunbanjo, disclosed this to newsmen while commenting on the recent allegation by the Ministry of Finance, Budget and National Planning that the Minister of Communications and Digital Economy was well aware of the inclusion of the five per cent excise duty on telecoms services.
The Minister of communication, Isa Pantami, while speaking at the maiden edition of the Nigerian Telecommunications Indigenous Content Expo, had said that the Ministry of Communications and Digital Economy is not satisfied with any effort to introduce excise duty on telecommunication services.
“Firstly, I have not been consulted officially and part of the rulemaking is to invite stakeholders to make contributions, I was not consulted officially.
“Secondly, if we have been contacted, we would have challenged the submission”, Pantami had said.
Replying to the allegation, the Ministry of Finance, Budget and National Planning, said, “Against the comments by Minister of Communications and Digital Economy, Isa Pantami, concerning the five per cent excise duty hike on telecoms services, it is worth noting that there was a circular stating the planned hike which was addressed to the Communication Minister and other relevant ministries and agencies of government.”
Commenting on this, Ogunbanjo said, “The Minister of Finance is insisting on implementing the excise tax, this shows insensitivity particularly when the substantive minister of the affected sector is pushing back.
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Sugar Tax ‘ll Threaten Manufacturing Sector, Says CPPE
In a statement, the Chief Executive Officer, CPPE, Muda Yusuf, said while public health concerns such as diabetes and cardiovascular diseases deserve attention, imposing an additional sugar-specific tax was economically risky and poorly suited to Nigeria’s current realities of high inflation, weak consumer purchasing power and rising production costs.
According to him, manufacturers in the non-alcoholic beverage segment are already facing heavy fiscal and cost pressures.
“The proposition of a sugar-specific tax is misplaced, economically risky, and weakly supported by empirical evidence, especially when viewed against Nigeria’s prevailing structural and macroeconomic realities.
The CPPE boss noted that retail prices of many non-alcoholic beverages have risen by about 50 per cent over the past two years, even without the introduction of new taxes, further squeezing consumers.
Yusuf further expressed reservation on the effectiveness of sugar taxes in addressing the root causes of non-communicable diseases in Nigeria.
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