It is no longer news that President Muhammadu Buhari will be exiting the seat of power after eight years on May 29, 2023.
However, the reported introduction of the controversial tax on telecommunications services, beer, beverages, vehicles and others has unsettled Nigerians.
Recall that Minister of Communications and Digital Economy, Prof Isa Pantami, months ago hinted that the President had approved the exemption of the telecommunication sector from the 2023 FPM tax regime.
Similarly, the Director-General of the Manufacturers Association of Nigeria, MAN, Segun Ajayi-Kadir, has lauded the federal government for suspending the implementation of excise on beverages, alcoholic, non-alcoholic and Tobacco.
But, a new twist arose in a circular dated April 20 as the federal government began introducing and implementing the 2023 Fiscal Policy Measures, FPM.
Under the FPM implementation, 20-100 per cent excise duties on alcoholic beverages, Tobacco, wines and spirits have been introduced, effective June 1 2023.
Another 10 per cent green taxes on plastics, also, an Import Adjustment Tax (IAT) levy have been introduced on motor vehicles of 2000 cc to 3999 Celsius at 2% while 4000 Celsius and above will be taxed at 4% and the 5 per cent telecommunications services.
For the government, it is a necessary evil to gear up its tax drive, but for Nigerians, indeed consumers, it is an unnecessary burden.
While the revenue drive of the federal government has been supported by the International Monetary Fund and World Bank, who have always advocated for more taxes in Nigeria, the burden on taxpayers, manufacturers, businesses, and Nigerians has left more than imagined.
With Nigeria’s economy battling rises in inflation of 22.04% — the third consecutive increase in 2023, and over 60 per cent of people living below the poverty benchmark, average income of N30,000, more taxes would not be less than a bondage of economic constraint on Nigerians.
The taxes would be directly passed on to consumers, thereby impeding their purchasing power, meaning more Nigerians would be unable to afford some items due to a price increase.
Speaking with the Newsmen on Monday, the Chief Executive Officer of SD & D Capital Management, Mr Idakolo Gbolade said implementing the controversial excise duties and telecoms tax would leave the incoming government in a Bobby trap.
He said the administration of Bola Ahmed Tinubu, the president-elect, would struggle to justify the importance of the taxes, thereby may result in economic distraction.
“The decision of the outgoing administration to implement the controversial excise duties is to leave the incoming government with a booby trap.
“Although the implementation aims to increase revenue, it could also make the new administration busy justifying the increase, thereby distracting them from major reforms to turn around the economy”, he stated.
Meanwhile, the National President National Association of Telecoms Subscribers (NATCOMS), Chief Deolu Ogunbanjo, speaking on behalf of Telecoms service consumers, said the 5 per cent tax on telecoms service would not stand because the federal government had been dragged to Court.
“I tell you, the case is already in Court. If the Court gets it right, the judgement may wing in our favour, and the tax would be removed. The sector is already heavily taxed, and Nigerians are paying heavily on calls and data.
“I pray the judgement goes in favour of Nigeria telecoms subscribers. If not, it would be a pain in the flesh of every Nigerian”, he disclosed.
Also, the Executive Secretary Association of Telecommunications Companies of Nigeria (ATCON), Mr Ajibola Olude, expressed surprise at the legacy Buhari would be leaving for Nigerians.
“It is a parting gift by President Muhammadu Buhari to Nigerians; I would rather sit and watch how things unfold”, he said. CONTINUE READING…………………………………..
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