President Bola Tinubu’s administration is proposing to impose a 5 percent tax on telecommunication, gaming and betting services in the country.
This proposal is part of the Economic Stabilisation Bills recently sent to the National Assembly by the Federal Government.
The bill seeks to introduce excise duties on services such as telecoms, gaming, gambling, lotteries, and betting provided in Nigeria.
By implication, Nigerians using telecoms and betting services would have to pay more as part of the government’s drive to overhaul the country’s tax framework.
“Services, including telecommunications, gaming, gambling, betting and lotteries however described, provided in Nigeria shall be charged with duties of excise at the rates specified under the Tenth Schedule to this Act in a manner as may be prescribed by the Service.”
Recall that the Federal Executive Council in September 2024 approved the bill as recommended by the Presidential Committee on Fiscal Policy and Tax Reforms.
Similarly, the bill contained plans to impose a 25 percent tax on Nigerians earning above N1.5 million as salaries.
The bill is expected to come into force in 2025 if it scales through the National Assembly.
Former Minister of Communications and Digital Economy, Isa Pantami had in May 2023 announced the exemption of the sector from the application of the tax.
However, the telecom sector is included in the new proposal sent to the National Assembly.