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FG removes excise duty for telecoms services

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Mukhtar Yahaya Usman

 

 

The Federal Government has announced the removal of excise duty for telecom sub-sector of Nigeria’s Digital Economy Industry in line with the recommendations of the Committee it constituted to review the applicability of the Duty to the telecom sector which is considered already overburdened with taxation and sundry levies.

KANO FOCUS reports that Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim Pantami, disclosed this on Tuesday at a press briefing in Abuja.

The briefing was organised to provide updates on the status of the five per cent excise duty, whose applicability to the telecom sector was objected by the Minister in August 2022, following which President Muhammadu Buhari suspended its application to the telecom sector and set up a Presidential Review Committee on Excise Duty in the Digital Economy Sector.

Pantami, who is the Chairman of the Committee, specifically set up for the purpose of reviewing the proposed excise duty in the telecom sector, said the Committee carried out its national assignment and accordingly submitted its report to the President, justifying why the sector should be exempted.

A statement sent to KANO FOCUS by the Director Public Affairs Nigerian Communications Commission Reuben Muoka qouted the Minister saying “the Committee’s submissions can be summed up in three arguments put forward to justify why additional burden in form of taxes or any level should not be imposed on the telecom sector to prevent a reversal of the important contribution the sector is making to the growth of the Nigerian economy.

“Our justifications are based on three premises: First, is the fact that operators in the telecoms sub-sector of the digital economy industry currently pay no fewer than 41 different categories of taxes, levies and charges; secondly, that telecoms has continued to be a major contributor to Nigerian economy in terms of Gross Domestic Product Contribution (GDP).

“The third ground for contesting the Excise Duty in telecom sector is the fact that, despite increase in the cost of all factors of production across sector, and naturally leading to increase in costs of products and services, telecom sector is the only sector where cost of service has been stable and in many cases continued to go down over the past years and therefore, adding more burden will destroy the sector.”

The Minister also informed the gathering that the President, having looked into the arguments put forward by the Committee and relying on the provision of the Section 5 of the Nigerian 1999 Constitution, as amended, has therefore, exempted telecom sector from the list of sectors to pay the excise duty as stated in Finance Act of 2021 and other subsidiary legislations, all of which are not as superior as the Constitution which permits the President to grant such waiver.

Pantami said: “I am happy to report to you that President Muhammadu Buhari, GCFR, has approved the exemption of the digital economy sector from the five percent excise duty to be paid and this is because of the strength of the argument presented to him by the Committee that additional burden on telecom sector will increase the sufferings of Nigerians and that other sectors that are not making as much contribution to the economy should be challenged to do more and pay the five per cent excise duty.”

The Minister assured Nigerians, who are telecom consumers, that the presidential exemption given to the telecom sector shall be sustained by the incoming administration as “the decision by the President is not about any political party or any administration but about Nigeria and welfare of Nigerian citizens.”

The Minister further noted that the Digital Economy Sector has continued to contribute significantly to the growth of the Nigerian economy, having contributed 14.07 per cent to the GDP in the first quarter of 2020; 17.79 per cent in the second quarter of 2021; and 18.44 per cent in the second quarter of 2022.

He said the sector has also increased its quarterly revenue generation for the government from N51 billion to over N480 billion. The increase represents a growth of 594 per cent; while the cost of buying data has also reduced from N1,200 in 2019 to N350 presently, despite the increase in the cost of operations, including the energy challenge that has caused mobile network operators to power base stations with over 32,000 power generating to provide seamless services to their teeming consumers.

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Hajj 2024: Gov Yusuf approves N1.4bn subsidy for 2,900 intending pilgrims

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Hajj

Nasiru Yusuf Ibrahim

The Kano State Governor, Abba Yusuf, has paid N500,000 for each Kano intending pilgrim who will perform this year’s Hajj under the umbrella of the Kano State Pilgrims Welfare Board.

KANO FOCUS reports that the Director General of the Board, Alhaji Lamin Rabiu Dan Baffa, disclose this while briefing journalists on Wednesday.

He said the Kano State Government took the decision with regards to the recent increase of the Hajj fares by the National Hajj Commission of Nigeria which was attributed to the instability of the forex exchange rate.

“We consider the current economic hardship people are facing and the increase of Hajj fares is a great challenge to many intending pilgrims, that’s why we came up with the subsidy initiative to alleviate the sufferings of intending pilgrims,” he said.

Dan Baffa urged all intending pilgrims to ensure that they pay the balance before March 28, 2024, as directed by NAHCON.

The Director General maintained that those to benefit from the Hajj subsidy are those who have already paid part-payment to the board, saying over 2,900 intending pilgrims have already made their part payment with the board.

Recall that early this week, NAHCON announced the increase of Hajj fares with N1,918,032.91, which makes the total Hajj fares N6,617,032.91.

Meanwhile, fresh intending pilgrims are required to pay N8,254,464.74 as the full Hajj fare for this year, as required by NAHCON. Lamin Rabiu Dan Baffa, disclose this while briefing journalists on Wednesday.

He said the Kano State Government took the decision with regards to the recent increase of the Hajj fares by the National Hajj Commission of Nigeria which was attributed to the instability of the forex exchange rate.

“We consider the current economic hardship people are facing and the increase of Hajj fares is a great challenge to many intending pilgrims, that’s why we came up with the subsidy initiative to alleviate the sufferings of intending pilgrims,” he said.

Dan Baffa urged all intending pilgrims to ensure that they pay the balance before March 28, 2024, as directed by NAHCON.

The Director General maintained that those to benefit from the Hajj subsidy are those who have already paid part-payment to the board, saying over 2,900 intending pilgrims have already made their part payment with the board.

Recall that early this week, NAHCON announced the increase of Hajj fares with N1,918,032.91, which makes the total Hajj fares N6,617,032.91.

Meanwhile, fresh intending pilgrims are required to pay N8,254,464.74 as the full Hajj fare for this year, as required by NAHCON.

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Coalition reviews Kano 2024 budget, captured 557 citizens driven projects in education, health sectors

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Nasiru Yusuf Ibrahim

Coalition of Civil Society Organisations, government officials and journalists have identified 557 citizens driven projects in 2024 approved budget.

KANO FOCUS reports that the group shared the findings during a validation session of the 2024 budget analysis held recently in Kano.

Presenting the findings Sulaiman Ismail from Hasken Kano said the state government has approved 426 citizens driven prproject in education sector in 2024 budget with a total value of N61. 01bn representing 13% of the total budget.

He observed that personnel expenditure witnessed a significant increase of 77 % compared to that of 2023 approved budget.

Presenting a paper titled Health Sector Citizens Analysis, Akibu Hamisu of the Kano budget working group pointed out that, the state government had set aside over seventy two billion Naira, representing over 16% of the total budget in health sector.

He said out of the 273 projects designed by the health sector, 131 were identified as citizens driven, 37 projects were allocated to urban communities and 68 were captured under rural communities.

Others who presented findings include Comrade Safiyanu Lawan Bichi and the secretary of the House Standing Committee on Higher Education, Kano State House of Assembly Muhammad Lawal.

In their goodwill messages, Khalid Mustapha from the Kano State Ministry of Planning and Budget (MoPB), described the session as a welcome development.

Umma Muhammad Rakana of PLANE project and Mohammed Jibril from Lafiya commended the collaboration between development partners and Kano State Ministry of Budget and Planning.

Earlier in his welcome address, the state partnership facilitator, PERL FCDO, Yunusa Hamza explained that the session was organized to present and validate findings from the budget analysis conducted by citizens group recently.

KANO FOCUS reports that the sessions ‘ tagged presentation and validation of the citizen’s analysis of the 2024 budget with stakeholders was supported by Partnership to Engage Reform and Learn (PERL) Partnership for Learning for All In Nigeria (PLANE) and Lafiya project.

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Kano Govt approves second term/Ramadan vacation

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Nasiru Yusuf Ibrahim

Kano State Government on Thursday, approved March 28, 2024 as the date for the commencement of 2nd term vacation to all day and boarding public, private primary and post Primary Schools in the state.

KANO FOCUS reports that parents and guardians of pupils and students in the boarding schools are therefore enjoined to convey their wards home on Thursday 28th March, 2024.

A statement issued by the Director Public Enlightenment of the State Ministry of Education Balarabe Abdullahi Kiru explained that boarding schools pupils and students are to resume back to their respective schools for the third term on Sunday 21st April 2024 while the day students are to resume on Monday April 22nd, 2024.

The statement quoted the Commissioner of the ministry Alhaji Umar Haruna Doguwa urging parents to ensure total compliance with the approved resumption date.

Umar Doguwa further, warned that appropriate disciplinary action would be taken against defaulting students.

He however thanked people in the state especially parents for the cooperation and support giving to the ministry, and wished the students successful and hitch free holiday.

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