The National Association of Telecoms Subscribers will write to the National Assembly over the Federal Government’s renewed push to impose a five per cent excise duty on telecommunications services.
The group is set to meet on Wednesday 4 December 2024, to finalise arrangements for the petition, which specifically seems to halt legislative approval of the controversial tax while the matter remains unresolved in court.
The legal battle against the excise duty is ongoing at the Lagos Division of the Federal High Court, where the case has been adjourned until March 13, 2025.
The President of NATCOMS, Adeolu Ogunbanjo, disclosed this to newsmen on Monday, highlighting the urgency of notifying lawmakers.
The subscriber association insists the Federal Government must wait for the court’s judgment before taking any further steps to implement the tax.
“We are meeting this Wednesday to finalise 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.
NATCOMS criticised the tax as excessive and insensitive. “Telecom services are already subjected to over 40 different taxes. Adding this will only increase the burden on subscribers,” Ogunbanjo said.
The National Secretary and Legal Adviser of NATCOMS, Bayo Omotubora, reiterated the group’s stance, arguing that the excise duty constitutes double taxation.
“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 has said.
The five per cent 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, it would apply to telecom services, including postpaid and prepaid services regulated by the Nigerian Communications Commission.
The proposed tax has faced strong opposition since it was first introduced in 2022 under former President Muhammadu Buhari’s administration.
The public backlash led to its suspension in July 2023 by President Bola Tinubu, who cited concerns about its impact on consumers and the economy. However, the government has revived the plan as part of efforts to boost revenue amidst economic challenges.
The association’s planned petition to the National Assembly will emphasise the pending court case and highlight the economic and constitutional concerns surrounding the excise duty.
