FG adamant on tariff hike on calls, data, says no going back

Despite criticisms from stakeholders and consumers, the Federal Government has said there is no going back on the proposed five per cent tax hike on telephone calls and data.

When the hike is implemented, Nigerians will pay 12.5 per cent tax on calls and data. 7.5 per cent being Value Added Tax currently being charged.

Mr. Tanko Yususa, the media aide to the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, in a statement said the five per cent excise duty on calls and data is a revenue driver for the government.

Yunusa said the minister gave the government’s position at a stakeholders’ meeting organised by the Nigerian Communications Commission.

Ahmed, who was represented by the Assistant Director, Tax Policy, Federal Ministry of Finance, Budget and National Planning, Musa Umar, said, “The five per cent excise duty has been in the Finance Act 2020, but has never been implemented.

“Henceforth, the five per cent excise duty will be collected by telecom operators and payment made to the federal government on a monthly basis, on or before 21st of every month.”

She insisted that there was a circular stating the planned hike which was addressed to the communication minister and other relevant ministries and agencies of government.

The circular Referenced No. F. 17417/VI/286 dated 1st March 2022, and titled “Approval for Implementation of the 2022 Fiscal Policy Measures and Tariff Amendments” was addressed to different Ministers, including Minister, Communications and Digital Economy and other heads of government agencies.

The circular was addressed to The Secretary To The Government of The Federation, Attorney-General of The Federation, Ministers of Industry, Trade an Investment, Agriculture and Rural development, Mines and Steel and Development.