Patanmi Rejects Five Percent Telecom Tax

The Minister of Communications and Digital Economy, Prof Isa Pantami has rejected the imposition of five per cent tax on the telecom sector.

Speaking in Lagos at the ongoing forum organised by the Nigeria Office for Developing the indigenous Telecom Sector (NODITS), an agency domiciled in the Nigeria Communications Commission (NCC), the Minister faulted the timing and process of imposing the tax on the industry.

He argued that part of the responsibility of responsive government is not to increase the problems of the citizens.

He said he is not in support of excise duty.

He said: “I have not been contacted officially. If we are, we surely will state our case. The sector that contributes to the economy should be encouraged. You introduce excise duty to discourage luxury goods like alcohol.

“Broadband is a necessity. If u look at it carefully the sector contributes two per cent excise duty, 7.5 per cent VAT to the economy and you want to add, more.”

He said more hardship at this time cannot be tolerated.

He urged the tax masters to expand the scope of other sectors that are not contributing to the economy to do so.

“We must come together and salvage the sector. Only telecom sector contributed 13per cent and you want to add more,” he wondered.

Pantami faulted the lawmaking process that produced the harsh tax because it didn’t involve the chairman of House communications Committee.

Also, Pantami said Africa’s biggest country should not be importing things that could be produced within.

“Let me make it clear that the federal government will no longer tolerate the importation of sim cards. We are now producing them in Nigeria.

“Our aim is to increase indigenous content in the ICT sector so that by 2025, we will be self-reliant by at least 80 percent”, the minister noted.

Pantami urged stakeholders and citizens to support government efforts to boost local patronage and consumption.

“If we do this, history will be kind to all of us”, the professor of Cybersecurity added.

In June, Pantami informed the public that the Buhari administration had established a SIM card manufacturing plant in Lagos.

The facility, built with private sector support, has the capacity to produce 200 million cards annually and also export them to other African countries.