Nigeria’s Ministry of Communications and Digital Economy said the digital economy has been excluded from the 5% excise duty approved by the government.
A six-member committee was set up on September 5, 2022, to assess the potential effects on the economy of an additional 5% excise duty tax charge on the digital economy sector, The Guardian newspaper reported, citing a spokesperson to the Minister of Communications and Digital Economy.
After five months of intensive and objective deliberations, the committee submitted its report to President Muhammadu Buhari on February 13, 2023.
The spokesperson said the report recommended the exclusion of the proposed and suspending 5% excise duty tax on the digital economy sector.
The committee analysed the existing 41 taxes, levies and charges already imposed on the sector “and concluded that instead of burdening the sector with more taxes, concessions should be considered to sustain its unprecedented contributions to the growth of the Nigerian economy.”
President Buhari approved the exclusion on March 13, 2023, the spokesperson said.
The telecom sector’s contribution to GDP stands at 594 billion nairas ($1.29 billion), the report added.
(Editing by Seban Scaria email@example.com)