Connect with us


Mixed reactions trail FG excise tax on airtime plan



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 our reporter 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.

“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, Mr 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,” Okezie said.

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, Mr 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,” Akabueze said.

Simon Akoje

NEWSVERGE, published by The Verge Communications is an online community of international news portal and social advocates dedicated to bringing you commentaries, features, news reports from a Nigerian-African perspective. A unique organization, founded in the spirit of Article 19 of the Universal Declaration of Human Rights, comprising of ordinary people with an overriding commitment to seeking the truth and publishing it without fear or favour. The Verge Communications is fully registered with the Corporate Affairs Commission of the Federal Republic of Nigeria as a corporate organization.



Shell Digital Plan RESPONSIVE600x750
Shell Digital Plan RESPONSIVE600x750