The Federal Government of Nigeria recently announced excise duties at 5% on telecommunications services in Nigeria, as part of the 2022 Fiscal Policy Measures and Tariffs Amendments Order. This is further to recent amendments to the Customs and Excise Tariff, Etc. (Consolidation) Act which included telecommunications services provided in Nigeria, as subject to excise duties.
Although there are indications that the tax may have been suspended according to the Minister of Communications and Digital Economy, the legal process required to suspend the tax is yet to be activated or published. Therefore, from a legal perspective, the tax is still applicable and affected taxpayers need to take steps to ensure compliance.
Our Tax Alert sets out key things you should know about the excise duties either as an operator or user of telecommunication services in Nigeria. We have also highlighted relevant insights and grey areas which would need further clarification.
Please see our Tax Alert below:
Download PwC Tax Alert - New excise duties on telecom services_what you need to know