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FG Suspends 5% Excise Duty On Telecom Companies

Published

2 years ago

September 5, 2022

Editor

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The Federal Government has suspended the implementation of the 5% excise duty charge on telecom facilities earlier proposed by the FG.

The Minister of Communications and Digital Economy, Isa Pantami, disclosed this on Monday when he inaugurated a committee to review the 5% excise duty.

Speaking during the inauguration of the committee on the review of the 5% excise duty in the telecom sector, Pantami said that President Buhari granted his prayer for immediate suspension of the 5% excise duty.

“It is because of this the president has granted my prayers; no one immediate suspension of excise duty in the digital economy sector, and no two he approved that a committee be constituted to look into the matter carefully and advise him accordingly. This committee is to be chaired by the Minister of Communications and Digital Economy.”

Speaking further he said, “The president has appointed me to be his eyes and ears in the sector. and it is my responsibility to ensure we are just and fair to the operators, government and most importantly our people that are the consumers.”

He went further to tell the committee how he explained to the president on the effect of the excise duty on the sector.

“Recently, it was announced that some of our respected brother and sister (government officials), kick started the process of introducing excise duty in the telecom sector in and from there and then, based on the constitution and being the representative of president Buhari in the sector. I rejected that whole heartedly being the representative of the president.

“I formalised my position and explained to him in a letter that could be referred to as a petition, (reasons; excise duty is usually fixed on luxury products

“I told the president (in the letter) that if care is not taken, that attempt will destroy the digital economy sector that is becoming the backbone of our economy.”

On why he kicked against the excise duty, he said, “Despite our achievements we have been recording some challenges in the sector and if care is not taken these challenges could be a barrier in the development of the sector in the next few years to come.

“One of them; excessive taxes and sometimes multiple taxation. As it is today in the tax category of ICT sector (39) which is very worrisome.

“But as of today the ICT sector is over burdened by so many categories of taxes to the extent that today there are 41 categories of taxes at the federal and state level, particularly in the telecom sector. Some at federal level and some at state level.

“Beside these taxes are multiple taxes (the same taxes being collected at the federal level is also what the states are insisting be paid to them. If care is not taken this is what will jeopardise the achievements and gains that we have recorded so far in the sector.”

Pantami noted that prices of products and services in the order sector have increased significantly but the prices of products and services have not increased significantly in the last three years.

The mobile Network Operators looking at things outside our sector like petroleum products, exchange rate, inflation, devaluation of the currency among others have been coming with many initiatives asking the regulator to allow them review their prices upward.

“And whenever the regulator escalates the matter to me; I will always encourage and urged them to try and persevere with the little profit they are making because the current economic situation in Nigeria doesn’t allow us to continue to add burden on our poor citizens that our suffering and can hardly get three square meals in a day and broadband and telecommunications services are becoming a necessity that a luxury.

In his words, Mnos has been coming to us to allow them to increase prices of their products. I have been encouraging them to be patient. In these three years there were more than 15 attempts to increase the price of telecommunications services and in all of them I retained my position; saying no.”

The Minister of Communications and Digital Economy will serve as Chairman of the Committee.

Members of the committee include: Pantami Chairman, while the Minister of Finance and National Planning, Chairman, Federal Inland Revenue Services (FIRS), Executive Vice Chairman (EVC) of the Nigerian Communications Commission (NCC) and Representative of all Telecom companies in Nigeria.

News

VIDEO Newly Appointed LG Supervisors, Advisers In Ekiti Take Oath Of Office With ‘Ogún’

Published

22 mins ago

May 7, 2024

Editor

A video showing newly appointed supervisors and advisers of Ikere-Ekiti LGA in Ekiti state were sworn in with an ‘Ògún’ totem and the Quran.

A viral video shows the supervisors and advisers swearing at the conference hall of the office of Olu Adamolekun, chairman of Ikere-Ekiti LGA.

The oath of office was administered on the appointees by Adamolekun. The appointees could be seen taking turns to wield a cutlass (a totem for the god of iron) in one hand and a Quran in the other.

While administering the oath of office, Adamolekun asked the appointees to repeat the following in Yoruba

‘’From today, I will be loyal and truthful to BAO (Ekiti state governor), and Monisade (deputy governor), APC and its leaders. I will take instructions from the leaders. If I refuse to do so, Ogun or Quran should kill me. For this, I will be truthful” each appointee said as they took their oath

In Nigeria, public office holders usually swear an oath of office using the Quran or Bible, while pledging allegiance to the constitution.

Watch the video of the swearing-in ceremony below:

News

JUST IN: DSS Arrests Wanted Oyo Motorpark Boss, Auxiliary

Published

51 mins ago

May 7, 2024

Editor

The Department of State Services has reportedly arrested the wanted former chairman of the Oyo State Park Management System, Mukaila Lamidi, popularly known as Auxiliary.

The PUNCH reliably gathered that Auxiliary was arrested at about 4:00 pm on Tuesday at his residence in the Olodo area of Ibadan, the state capital.

Although the reasons for his arrest are still sketchy, a source who spoke to our correspondent on the condition of anonymity because of the weight of the matter said it was because of an interview he granted on Saturday, May 4, in which he called out Seye Famojuro, a trusted ally of Oyo State Governor, Seyi Makinde, for being behind his woes.

In the interview he granted to Media personnel, Ajibola Akinyefa, in the Yoruba Language, the former PMS chairman said, “If he (Famojuro) is the governor or Seyi Makinde is, we will know. It is just a matter of time. Everybody will face the consequences of their actions. The people he chose to manage the park are cheating themselves.

When asked if it was his hooliganism that led to his removal, Auxiliary queried how many people reported that he beat them to the police.

He further said that Seye would still return to Ijesha because Ibadan is not his homeland.

“Seye will still go back to Ijesha because Ibadan is not his town. Only Governor Seyi Makinde and I will remain here because we won’t run away. And I see that the bird is not working, but God feeds it. Seye will reap the seeds of his actions,” he added.

In May 2023, Auxiliary was arrested after being linked to an alleged attempt by his loyalists to cause trouble in the state following the dissolution of the PMS committee by Makinde.

An impeccable source who spoke with PUNCH Metro said the police acted swiftly to prevent a breakdown of law and order in the state, adding that during the raid, Lamidi escaped which led to him being declared wanted.

The source, who craved anonymity over fears of harassment, said, “From what we gathered, the police acted on the information that some members of the Auxiliary’s camp wanted to cause trouble based on the government disbanding their operations in the state.

“So, the police were proactive, stormed their location, made some arrests and recovered some arms and ammunition. But Auxiliary was not arrested. The people arrested were in connection with the fact that intelligence linked them to an attempt to cause trouble in the state today.”

However, attempts to reach the spokesperson for DSS, Peter Afunnaya, proved abortive as several calls made to him were unanswered and text messages ignored.

News

Benue To Build Brewery As Residents Spend N850m On Beer Monthly

Published

3 hours ago

May 7, 2024

Editor

Benue State Government has concluded plans to start production of beer brand to stop capital flight to other states.

The Managing Director of Benue Investment and Property Company, Dr Raymond Asemakaha, disclosed this to journalists on Tuesday.

He said that the beer’s name will be unveiled during its launch in December.

Asemakaha, who took journalists on a tour of the proposed brewery, water, and bakery factories in Makurdi, the state capital, said that the initiative to set up a brewery came as a result of recent studies showing that a huge amount of money leaves the state every month on beer consumption.

Asemakaha said the company was out to give Benue and Nigerians a high-premium quality beer made in the state using local raw materials.

He said that BIPC was not in competition with any brewery company therefore, would do everything for the people to enjoy a beer with a difference.

He said, “Basically, when we came on board, we understand that the rate of alcohol consumption in the state is between N850 million per month.

“We understand that the people that are selling these beers have taken this money out of Benue State.

“So, we discovered and said no, all what we need to do is to float a new company that we can be able to observe and retain the cash flow within the system. That is why we are embarking on beer production.

“This N850 to N870 million is a monthly sale of beers in the state, and within the month of December, they have made one billion naira in sales. So, one of the things we are doing is to help retain the cash flow within the system.”

According to the MD, the estimated production capacity is 180,000 bottles per day, and the fermentation period is 15 days.

“We will crash the price of beer in the state, but we are not going to compete with them (other breweries). We want to retain the cash within us. It is our own thing. So, the people here, our brothers and sisters, should be able to key in and take our products,” he said.

While stating that raw materials will be locally sourced, Asemakaha stated that the factory would commence full production by the first week of December.

“What we want to do is that this season, we want to give people seedlings so that we can go back to production and take those products from them to plant and harvest,” he added.

The managing director said that the brewery project would cost between ₦700 and ₦800 million, just as he expressed assurances that the amount would be sourced.