Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • 2023 Elections
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • 2023 Elections
No Result
View All Result
Nairametrics
No Result
View All Result
Home Economy Budget

Budget Office disagrees with Communications Minister on suspension of 5% tax on telecoms

Chike OlisahbyChike Olisah
7 months ago
in Budget, Business, Business News
Ben Akabueze, Nigeria budget shortfall

Director-General of the Budget Office, Ben Akabueze

Share on FacebookShare on TwitterShare on Linkedin

The Director General of the Budget Office, Ben Akabueze, has disagreed with the Minister of Communications and Digital Economy, Isa Pantanmi, on the suspension of the 5% excise duty on telecommunication services.

Akabueze, while justifying the tax said that tax on telecommunication services in Nigeria is below the African average, noting that members of the private sector were part of the tax policy review committee that deliberated on the matter.

This is coming as the argument over the implementation or otherwise of the tax policy among some analysts and stakeholders rages on.

This was made known by Akabueze while appearing on an Arise Television programme, Global Business report, on Tuesday, September 6, 2022.

Akabueze said that as at 4 years ago, at least 21 African countries had excise taxes on telecom services, adding that Nigeria has the lowest tax to GDP ratio in the continent.

What the Director-General of the Budget Office is saying

On the clash between the Finance Minister of Finance and the Minister of Communications and Digital Economy on the proposed 5% excise duty on telecommunications services, Akabueze said, ‘’Well I am sure that this is a matter that will be resolved in due cause, but let me say something. I am a member of the tax policy review committee which includes members of the private sector, in fact majority of the members are from the private sector and we deliberated on this matter before we arrived at including this in the finance bill for 2020.

‘’One of the things we looked at that time as of 4 years ago at least 21 countries in Africa had excise taxes on telecom services, in all of these countries also the VAT rate was on the average double rate the VAT rate for Nigeria. There are extensive studies on this subject, about the taxation on telecommunication companies in Africa and other developing countries. I assure you that the Average Effective Tax Rate (AETR) on telecommunications in Nigeria is below the African average.

‘’On this continent, as of today we have the lowest tax to GDP ratio and so at a time we face existential revenue challenges I think we all need to be circumspect on what views we take on this matter. This wasn’t something that the ministry of finance woke up and introduced. The finance bill went through the federal executive council, it went to the national assembly as an executive bill from Mr President. There were public hearings and at the end of the day, they passed it into law, it was signed into law.

‘’We were engaging the customs and NCC about implementation and then I remember the Chief Executive of NCC saying that in accordance with their procedures, they will like to have an engagement with their industry practitioners on this to discuss the modalities for the implementation and that was the last I heard before all of these controversies broke, but I’m sure that it’s something that government will resolve in due cause.’’

The Finance Ministry has not been advised on the suspension of the tax

On whether the Finance Ministry and Budget Office are suspending the telecommunications tax for now, where does the money for the expected revenue come from, Akabueze said, ‘’I don’t know about in terms of suspension, this is law now. I haven’t beyond what I read in the media, we haven’t been advised about the suspension. So for instance recently the federal executive council passed the medium-term expenditure framework for 2023 and 2025.

‘’That framework that the federal executive council passed includes projections for this tax. That framework is before the national assembly over the last 2 weeks, the finance committee of the national assembly have been holding engagements with agencies of government on this.

‘’So if we are formally advised that this is not applicable we will have to rework the medium-term expenditure framework. What that means is that the projected revenues will decline and the deficit will increase, which means that we will either have to cut back on expenditure or increase debt.’’

What you should know

  • Recall that yesterday (September 5), Pantami had announced the federal government had suspended its planned implementation of the 5% excise duty on telecommunications services during the inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector.
  • The Minister who had earlier rejected the proposed tax noted that the telecommunications sector is already overburdened by excessive and multiple taxations and faulted the timing and process of imposing the tax on the sector.
  • The Federal Government through the Budget Office of the Federation had earlier revealed that it would begin the implementation of its proposed excise duties on telecommunication services and beverages in 2023

Related

Tags: 5% excise dutyBudget Office

Leave a Reply Cancel reply

Press one
hfm
Mega Millions
fidelity banner
SME
HFM
Patricia





NM newsletters

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • Nigerian Exchange closes bearish as investors lose N341 billion
  • Just in: NLC, TUC suspend planned strike over naira scarcity
  • Xiaomi Launches Redmi Note 12 Series in Nigeria Inspiring Users to “Live Vivid”

Follow us on social media:

Recent News

The Nigerian Exchange closes bearish as investors lose N341 billion

Nigerian Exchange closes bearish as investors lose N341 billion

March 28, 2023
Just in: NLC, TUC suspend planned strike over naira scarcity

Just in: NLC, TUC suspend planned strike over naira scarcity

March 28, 2023
  • Download Nairametrics iOS App
  • Download Nairametrics Android App
  • Home
  • Exclusives
  • Markets
  • Industries
  • Economy
  • Business News
  • Financial Literacy
  • Opinions

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • 2023 Elections

© 2023 Nairametrics

error: Alert: Content selection is disabled!!