President, Muhammadu Buhari has suspended the five per cent Excise Duty imposed on the Digital Economy Sector.
This was disclosed on Tuesday by the Minister of Communications and Digital Economy, Isa Pantami.
The Minister made the disclosure at the briefing by the Presidential Review Committee on Excise Duty.
Pantami said, “On the 6th of March 2023, I am glad to say and to report to Nigerians that His Excellency, President Muhammadu Buhari, the President of the Federal Republic of Nigeria has approved the exemption of the Digital Economy Sector from the 5 per cent Excise Duty to be paid and this is because of the strength of the argument presented to him that the implementation will increase hardship on the citizens.
“He strongly insisted that other sectors that need to contribute more be challenged to improve revenue generation for the Federal Government.”
Last year, the Minister of Finance Budget and National Planning, Zainab Shamsuna Ahmed had announced the introduction of 5 per cent duty on the telecom sector.
But Pantami in September suspended the move saying the duty will induce more hardship on Nigerians.
According to him, the five per cent duty would have negative implications on the digital economy sector, and most especially telecommunications.
Pantami had argued that the sector was already overburdened with a plethora of taxes totalling about 41 categories.
In the fresh development, the Minister revealed that Buhari exempted the sector from the duty on March 6th, 2023 following the hardship faced by Nigerians.
He said, “Many MSMEs and SMEs depend on the sector for survival; if the tax is increased, the impact will take a toll on these businesses.
“To this end, on March 6, President Muhammadu Buhari approved the exemption of the digital economy sector on the five per cent excise duty because it would harm the Nigerian citizens.”