The Nigerian government has announced plans to impose a 5% excise tax on telecommunications, gaming, and betting services, despite the country's ongoing economic difficulties. This proposal is part of the Economic Stabilisation Bills recently submitted to the National Assembly.
The bill aims to introduce excise duties on various services, including telecoms, gambling, lotteries, and betting, as part of a broader effort to revamp the nation’s tax system. If implemented, Nigerians who use these services will face higher costs as the government seeks new revenue streams.
The proposed legislation, which is set to be debated in the National Assembly, states: “Services, including telecommunications, gaming, gambling, betting, and lotteries however described, provided in Nigeria shall be charged with duties of excise at the rates specified under the Tenth Schedule to this Act in a manner as may be prescribed by the Service.”
The Federal Executive Council approved this bill in September 2024, following recommendations from the Presidential Committee on Fiscal Policy and Tax Reforms. The bill also includes a plan to impose a 25% income tax on Nigerians earning more than N1.5 million annually.
If the legislation is passed, the new taxes are expected to take effect in 2025. Notably, this proposal comes after the former Minister of Communications and Digital Economy, Isa Pantami, announced the exemption of telecom services from taxation in May 2023.
The new tax proposal signals the government's continued focus on fiscal reforms aimed at boosting revenue to address economic challenges in the country.
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