Wednesday

The National Association of Telecoms Subscribers (NATCOMS) is preparing to petition the National Assembly over the 5% excise duty on telecommunications services. The legal suit over the excise duty is before the Federal High Court, Lagos State, which has been adjourned till March 13, 2025. 
Recall that last month, the group <a target="_blank" href="https://technext24.com/2024/10/21/5-duty-telcos-reacts-sue-government/" rel="noreferrer noopener">expressed</a> its plan to take legal action against the Federal Government on the proposed levy. They stressed then that the case, formally filed during the COVID-19 pandemic, will be revived in the court. 
Following this development, NATCOMS is set to meet on Wednesday to discuss and finalize the petition arrangement. The move will strategically focus on halting the legislative approval of the tax. The group argues that since the case is still pending in court, there should be no approval by the National Assembly. 
The President of NATCOMS, Adeolu Ogunbanjo while noting the urgency of notifying the assembly pointed out that the Nigerian government must await the court’s judgment before taking steps on the tax implementation. 
“We are meeting this Wednesday to finalize the arrangement to write the National Assembly. If we don’t inform them that there is a pending court case, the Assembly might unknowingly pass the bill into law. That would be disastrous for subscribers and the industry,” he stated. 
<figure class="wp-block-image size-full is-resized">
 <img loading="lazy" decoding="async" width="263" height="240" src="https://technext24.com/wp-content/uploads/2024/12/Adeolu-Ogunbanjo.jpg" alt="NATCOM chairman, Adeola Ogunbanjo reacts to 5% excise duty implementation" class="wp-image-240961" style="width: 100%;height:auto">
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 The President of NATCOMS – Adeolu Ogunbanjo
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He also criticized the levy and added that the federal government implementing this tax while the case is still in court would fault constitutional proceedings. 
“Telecom services are already subjected to over 40 different taxes. Adding this will only increase the burden on subscribers. The case is before the Lagos High Court and has been adjourned to March 13, 2025. Until a decision is made, implementing this tax would be illegal and unconstitutional. The Federal Government must respect the judicial process,” Ogunbanjo said. 
Also speaking, the National Secretary and Legal Adviser of NATCOMS, Bayo Omotubora warned that the excise duty only means double taxation. 
“We are not just fighting for the legality of this tax but also to protect millions of Nigerians who rely on affordable telecom services. With the court case adjourned and preparations for the petition underway, NATCOMS has called on the government to suspend any action on the proposed tax until the legal dispute is resolved,” the legal adviser added. 
The 5% excise duty is part of a broader tax reform initiative under a bill titled “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters”. 
If passed, the tax would apply to telecom services, which include postpaid and prepaid services regulated by the Nigerian Communications Commission (NCC). 
<h4 id="alton-condemns-move-on-5-excise-duty" class="wp-block-heading">ALTON condemns move on 5% excise duty</h4> 
Another major stakeholder in the telecommunications sector, the Association of Licensed Telecom Operators of Nigeria (ALTON), raised serious concerns about the effect of the 5% levy in October. The Chairman, Gbenga Adebayo, said in a statement that its implementation would increase the subscribers’ existing financial burden.&nbsp; 
“We stand by our objection to the proposed tax. We had written extensively about this before regarding the implications for consumers. Even as operators meant to collect these taxes, we believe it is insensitive to the subscriber today,” he said. 
<figure class="wp-block-image size-full is-resized">
 <img loading="lazy" decoding="async" width="1032" height="1032" src="https://technext24.com/wp-content/uploads/2022/06/Gbenga-Adebayo-ALTON.jpeg" alt="Telecom operators demand urgent settlement as USSD debts from banks rise to $200bn" class="wp-image-147303" style="width: 100%;height:auto">
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 Mr Gbenga Adebayo
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He further expressed that the government is inconsiderate to have brought about the reintroduction of excise duty. “Given the challenges that the industry and the economy are facing, it would be insensitive for the government to introduce this type of levy on consumers at this time. We kick against it and think the government should rethink this proposal because the time is certainly not right for it.” Adebayo said. 
Similarly, the president of the Association of Telecommunications Companies of Nigeria, Tony Emoekpere expressed that the association was surprised by the proposal. He pointed out that they are currently studying the situation. 
“We just received information about this reintroduction of the 5% telecom tax, and we are currently studying the proposal to understand its full implications. The telecom industry has been clamouring for a tariff increase to sustain operations, and this new excise duty will only exacerbate the challenges we face,” Emoekpere said. 
He further noted that the reintroduction of excise duty will hurt subscribers and operators. “We are here to see how this excise duty will affect the industry, but it seems clear that it will hurt both telecom companies and consumers,” he said. 
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 <img loading="lazy" decoding="async" width="800" height="449" src="https://technext24.com/wp-content/uploads/2023/06/Telecoms-1.jpeg" alt="Number of Nigerians living without telecom services drops by 27% in 10 years" class="wp-image-195902">
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The 5% excise duty was first introduced in 2022 during President Muhammed Buhari’s Administration. After facing several backlash from various stakeholders, it was <a target="_blank" href="https://www.merriam-webster.com/thesaurus/suspended" rel="noreferrer noopener">suspended</a> by President Bola Ahmed Tinubu in July 2023. The suspension was also followed by the import tax adjustment levy on certain vehicles, after concerns over its impact on consumers and the Nigerian economy. 
On Sunday, October 20, 2024, the Federal Government <a target="_blank" href="https://www.google.com/amp/s/punchng.com/fg-plans-5-tax-on-telecoms-services-others/%3famp" rel="noreferrer noopener">announced</a> a proposed 5% excise duty on telecommunications services, gaming, and betting activities as part of a new bill to overhaul Nigeria’s tax framework.&nbsp; 
Also Read: <a target="_blank" href="https://technext24.com/2024/10/21/5-duty-telcos-reacts-sue-government/" rel="noreferrer noopener">5% duty on telecoms, gambling: Nigerian operators condemn move, may sue government.</a>

5% excise duty: Subscribers to petition National Assembly over tax on calls and internet

Technext.ng

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