Friday, May 20, 2022

Nigerians ‘clash’ over FG’s plans to introduce excise tax on airtime charges

Must read

Rayyan Alhassan
Rayyan Alhassan is a graduate of Journalism and Mass Communication at Sikkim Manipal University, Ghana. He is the acting Managing Editor at the Daily Nigerian newspaper, a position he has held for the past 3 years. He can be reached via [email protected], or, or @Rayyan88 on Twitter.
- Advertisement -

Financial analysts have expressed mixed views over the Federal Government’s plan to introduce excise duty on telecommunications airtime charges.

The financial analysts expressed the mixed reactions in an interview with the News Agency of Nigeria on Tuesday in Lagos.

A tax consultant, Dr McAnthony Dike, told NAN that the plan was appropriate and would boost government revenue if well implemented.

Dike, who is a former President of the Chartered Institute of Taxation of Nigeria, said the proposed plan was not out of place.

“We are undertaxed in our country and one of the least in the continent, and how do we expect the government to meet its obligation.

READ ALSO:   French minister to meet with young Nigerians in creative industry 

“Our tax to Gross Domestic Product ratio is still within one digit regardless of our nation’s huge population,” Dike said.

He urged the political class to show leadership by reducing the cost of governance across board in line with the current economic realities.

But the President Progressive Shareholders Association of Nigeria, Boniface Okezie, said the timing of the tax idea was not good considering the impact of the COVID-19 pandemic.

“Nigeria has been paying one form of tax or the other, so introducing a new one will amount to multiple taxation.

“All these taxes will continue to weaken the purchasing power of our people,”Mr  Okezie said.

READ ALSO:   Court orders police to pay N50m to family of Kano man tortured to death in SARS cell

He suggested that the Federal Government should strengthen its diversification drive to boost revenue instead of initiating more taxes.

Recall that the Director-General of the Budget Office, Ben Akabueze, said recently at a World Bank event that government was considering excise tax on telecoms airtime charges to boost revenue.

“Last year, we found that 51 countries in Africa have excise on airtime charges, so we are looking at that as well as an area to tax,” Mr Akabueze said.


- Advertisement -

More articles


Please enter your comment!
Please enter your name here

- Advertisement -

Latest article

- Advertisement -

- Website Designed By DEBORIAN.COM, a Nigerian Web Designer and Web Developer -