Federal Government has suspended the proposed excise duty on telecommunication services.
The suspension was announced by the Minister of Communications and Digital Economy, Isa Pantami, on Monday during the inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector in Abuja.
According to the minister, the telecommunications sector is already overburdened by excessive and multiple taxes.
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.
The conservative estimated N160 billion is based on the aggregate amount of N3.21 trillion spent by Nigerians on the services through GSM, Fixed Wired, and Internet Service Providers in 2021.
Before the latest announcement by the Communications Minister, industry observers had cautioned that imposition of the tax would frustrate efforts of the federal government through the Nigerian Communications to make telecoms services affordable in Nigeria in order to bridge digital divide.