The Federal Government has suspended the proposed five percent excise duty on telecommunications services.
He spoke during the inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector.
Telecommunication subscribers, under the aegis of the National Association of Telecoms Subscribers (NATCOMS), had earlier threatened to challenge the legitimacy of the proposed five per cent excise duty on telecoms services in court.
They said that 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.
Amid condemnation of the move, Finance, Budget and National Planning Minister, Mrs Zainab Ahmed said on Thursday that the Federal Government was on course to implement the excise duty. Her Communications and Digital Economy counterpart, Prof. Isa Pantami had faulted the plan.
Justifying the legal challenge to the policy, NATCOMS President, Mr Adeolu Ogunbanjo said the policy “shows insensitivity particularly when the substantive minister (Pantami) of the affected sector is pushing back”.
