The Minister of Communications and Digital Economy, Isa Pantami, disclosed this when he inaugurated a committee to review the five per cent excise duty on Monday in Abuja.

During the committee’s inauguration, Mr Pantami said Mr Buhari granted his prayer for the immediate suspension of the five per cent excise duty.

“It is because of this that the president has granted my prayers. He approved that a committee be constituted to carefully examine the matter and advise him accordingly.

“The president has appointed me to be his eyes and ears in the sector. It is my responsibility to ensure we are just and fair to the operators, government and most importantly, the consumers.” 

On July 28, the regime hinted that the five per cent would be added to the already existing 7.5 per cent Value Added Tax (VAT) on telecommunications services. 

The minister, who serves as the committee’s chairman, further told the members how he explained to the president the effect of the excise duty on the sector. 

“Of recent, it was announced that some of our respected brothers and sisters kick-started the process of introducing excise duty in the telecom sector.

“Based on the constitution and being the representative of Buhari in the sector, I rejected that wholeheartedly.

“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,” he said.

On why he kicked against the excise duty, he said despite the achievements of the sector, it also had its challenges, which could be a barrier to its development in the next few years to come. 

“As of today, the ICT sector is overburdened by so many categories of taxes to the extent that there are 41 categories of taxes at the federal and state level, particularly in the telecom sector.

“Besides, 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, ” the minister said.

Mr Pantami added that prices of products and services in other sectors had increased significantly apart from the telecom sector in the last three years because of the economic situation in the country.

“The Mobile Network Operators have been coming to us to allow them to increase prices of their products, but I have been encouraging them to be patient,” he said.

Mr Pantami announced the committee members to include the Minister of Finance, Budget and National Planning, chairman, Federal Inland Revenue Services (FIRS).

Others are executive vice chairman of the Nigerian Communications Commission (NCC) and representatives of all telecom companies in Nigeria.

(NAN)