The Federal Government through the Budget Office of the Federation has revealed that it will begin the implementation of its proposed excise duties on telecommunication services and beverages in 2023.
This is despite backlashes from the Minister of Communications and Digital Economy, Isa Pantami, and the Manufacturers Association of Nigeria.
Discussing the tax which is under the purview of the Nigeria Customs Service, the government said the NCS would introduce frameworks for recovering duties, taxes, and appropriate fees from transactions conducted over electronic networks.
Explaining one of the strategies that would be implemented to improve Customs’ revenue collections over the period 2023-2025, the office said, “Full implementation of excise duty on telecom services, alcoholic, sugar-sweetened beverages, cigarettes and tobacco products.
“Therefore, excise revenue is expected to grow exponentially because of the introduction of the telecom service charge and SSBs”
It explained that the law now empowered the FIRS to appoint anyone as its agent to withhold or collect VAT and remit same to the service.
Stating the government’s plight, the budget office said, “Revenue generation remains the major fiscal challenge of the Federal Government.
Native Reporters
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