ATCON, the Association of Telecommunications Companies of Nigeria, has strongly opposed the Federal Government’s plans to reintroduce a five percent excise duty on the telecommunications sector. This move has been criticized as potentially burdensome for the industry, according to President Tony Emoekpere.
President Bola Tinubu had previously signed executive orders suspending the 5 percent excise tax on telecommunication services to ease the burden on businesses and households. However, the proposed Nigeria Tax Bill 2024 now includes provisions for excise duty on telecommunications services, causing concern among industry leaders like ATCON.
Emoekpere highlighted the negative impact of the proposed tax, warning that it could lead to increased costs for consumers and hinder growth in a sector crucial to Nigeria’s digital economy. ATCON plans to engage with the Ministry of Communications to address the sudden reappearance of the excise duty proposal.
Emoekpere emphasized the need for government support in reducing operational costs in the telecom sector, suggesting tax relief and incentives, as well as promoting local production of key telecom inputs as more beneficial alternatives to additional taxes.
The post was originally published on Vanguard News.