Telecom Operators Reject 5% Excise Duty, Warn of Economic Consequences

Telecom Operators Reject 5% Excise Duty, Warn of Economic Consequences

The Association of Telecommunications Companies of Nigeria (ATCON) has voiced strong opposition to the proposed reintroduction of a 5% excise duty on the telecom sector, warning of its potential negative impact on both the industry and consumers. ATCON President, Tony Emoekpere, expressed concern over the timing, citing ongoing economic challenges and the industry’s need for tariff increases due to rising operational costs. He urged the government to support the sector by lowering costs, particularly diesel prices, and warned that further taxation could hinder Nigeria’s digital economy and make communication services unaffordable.

The proposal to reinstate the excise tax follows President Tinubu’s earlier suspension of the duty in 2023. The new Nigeria Tax Bill 2024 also includes taxes on gaming, betting, and lotteries, sparking concerns across industries.