FG says no plans to introduce new taxes on telecoms and petroleum products

The federal government has clarified that there’s no ongoing attempt to introduce a new tax on telecoms services and petroleum products, describing ongoing claims as false and inaccurate.

According to a statement made by the Senior Special Assistant on Communications and Press Secretary to the Minister of Finance and Coordinating Minister of the Economy, Maryann Duke, she noted that the recommendations made by the IMF are not automatic and binding on the government.

“For the avoidance of doubt, the Federal Government is not considering the introduction of any new taxes on telecommunications services or petroleum products,” part of the statement reads. 

The clarification comes after the International Monetary Fund (IMF), in its Article IV consultation report on Nigeria, advised the federal government to introduce excise duty on telecoms and fuel to create enough fiscal space for development spending and social interventions. 

The statement added that recommendations and policy decisions are only adopted through a process established by the constitution, taking into account the country’s economic realities and national priorities. In that light, the current economic position of the country does not support the inclusion of tax on telecoms and petrol. 

It therefore urged the public, businesses, media organisations, and other stakeholders to disregard misinformation and reporting claiming that a new tax would be imposed on the products, which currently stand as essential daily goods for consumers.

The federal government reaffirmed its commitment to a transparent tax regime, aimed at stimulating economic activity, strengthening revenue capacity, and creating a more attractive environment for investment and job creation.

In the statement, the government maintained that any future tax policy changes, where necessary, would be announced through official channels and implemented in accordance with due process.

Also Read: How the telecoms interconnection pricing review affects 185m Nigerian subscribers.

VAT waiver on telecoms and petrol 

In an attempt to provide more clarification, the Nigerian government noted that the current Value Added Tax (VAT) waiver on petroleum products is applicable and has not been withdrawn. 

The statement explains that while existing laws provide for a fuel surcharge, a new measure can only take effect through a ministerial order and publication in the Official Gazette, stressing that no such action is being contemplated.

On telecoms, it noted that excise duty introduced before 2023 has since been repealed under the country’s new tax laws and is no longer applicable.

“The telecommunications excise duty introduced before 2023 has been repealed under the new tax laws and is therefore no longer applicable,” the statement added.

In addition, the statement mentioned that the continued suspension of certain taxes has helped ease the impact of global energy market shocks on households and businesses by keeping domestic fuel prices below international levels.

The federal government stressed that current fiscal and tax reforms are aimed at expanding economic opportunities and not increasing taxes or placing more burden on Nigerians.