Tinubu Govt Revokes 5% Telecom Tax On Calls, Data Services

The tax, which applies to both voice calls and data subscriptions, was introduced under the administration of former President Muhammadu Buhari.

The Nigerian government has announced the revocation of the 5% excise duty previously imposed on telecommunications’ voice and data services in Nigeria.

The National Orientation Agency (NOA), which announced the revocation of the telecom tax on voice and data services in a statement issued on Thursday, said the move is expected to ease cost pressures for millions of mobile phone and data users in the country.

The tax, which applies to both voice calls and data subscriptions, was introduced under the administration of former President Muhammadu Buhari.

However, it drew widespread criticism from industry players, telecom operators, and consumer rights groups, who argued that it would further drive up communication costs in a country already grappling with inflation and high living expenses.

According to the statement, Aminu Maida, Executive Vice Chairman of the Nigerian Communications Commission (NCC), disclosed that President Bola Tinubu ordered the removal of the tax during discussions on the recently passed Finance Act.

According to Maida, the President’s intervention was aimed at preventing additional financial strain on citizens while supporting the digital economy.

“The development is expected to bring relief to over 171 million active telecom users across the country, many of whom have faced a 50% tariff increase implemented earlier this year,” the statement added.

The 5% excise duty was first announced in 2022, with the justification by the government that it was part of its effort to boost revenue generation amidst dwindling oil earnings.

The Ministry of Finance at the time argued that the levy was in line with global taxation practices.

Telecom operators, under the umbrella of the Association of Licensed Telecom Operators of Nigeria (ALTON), however, warned that the policy would be counterproductive.

The ALTON noted that Nigeria already had one of the highest tax burdens on the telecommunications sector in sub-Saharan Africa.

Consumer advocacy groups such as the National Association of Telecoms Subscribers (NATCOMS) also opposed the tax, stressing that it would push millions of low-income users out of digital access.

SAHARA