A nation’s tax revenue is invested in boosting its economy. Would it really be advisable to impose additional taxes when overtaxation and unstable fiscal policies have already produced significant issues for Nigerian business owners and operators?
Recently, the Nigerian Federal Government announced plans to impose a 5% excise tax on all calls, texts, and data usage. The excise duty was approved in the statement made by the Minister of Finance on behalf of the President, who insisted that it be fully executed despite the opposition the levy had received from various parties.
In 2020, the VAT on telecom services was raised from 5% to 7.5%. So, with the new excise tax, the total tax bill will become 12.5%.
This newsletter highlights other concerns about the new tax and clarifies its effects on businesses in Nigeria.