Govt imposes fresh 5% tax on Telecoms, betting services

The Nigerian government plans to impose a 5 percent tax on telecommunication, gaming and betting services in the country amid economic hardship.

This was contained in the Economic Stabilisation Bills recently sent to the National Assembly by the Federal Government.

Analysis of the bill indicated that it seeks to introduce excise duties on services such as telecoms, gaming, gambling, lotteries, and betting provided in Nigeria.

By implication Nigerians using telecoms and betting services would have to pay more as part of the government’s drive to overhaul the country’s tax framework.

An analysis of the proposed legislation on Friday showed that it seeks to introduce excise duties on services such as telecoms, gaming, gambling, lotteries and betting provided in Nigeria.

“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.”

This comes after the Federal Executive Council in September 2024 approved the bill as recommended by the Presidential Committee on Fiscal Policy and Tax Reforms.

Similarly, the bill contained plans to impose a 25 percent tax on Nigerians earning above N1.5 million as salaries.

The bill is expected to come into force in 2025 if it scalesled through the National Assembly.

DAILY POST reports that the plan to introduce the 5 percent excise comes after the Former Minister of Communications and Digital Economy, Isa Pantami in May 2023 announced the exemption of the tax on the sector.

Credit: dailypost.ng

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