FG releases date to implement taxes on telecoms, beverage

FG releases date to implement taxes on telecoms, beverage

The Budget Office of the Federation has revealed that it will start the implementation  of its proposed excise duties on telecommunication services and beverages in 2023.

THECONSCIENCEng reports that the Budget Office of the Federation, which is under the Ministry of Finance, Budget and National Planning, revealed its plan in its ‘2023 – 2025 Medium Term Expenditure Framework and Fiscal Strategy Paper,’ which was released on Friday.

According to the ministry, this was in a bid to boost its non-oil revenue streams.

The minister further said that it expected excise duty revenue to grow exponentially because of the introduction of telecoms service charge.

Discussing the tax which is under the purview of the Nigeria Customs Service, the government said the NCS would introduce frameworks for recovering duties, taxes, and appropriate fees from transactions conducted over electronic networks.

Explaining one of the strategies that would be implemented to improve Customs’ revenue collections over the period 2023-2025, the office said, “Full implementation of excise duty on telecom services, alcoholic, sugar-sweetened beverages, cigarettes and tobacco products.

“Therefore, excise revenue is expected to grow exponentially because of the introduction of the telecom service charge and SSBs”

It explained that the law now empowered the FIRS to appoint anyone as its agent to withhold or collect VAT and remit same to the service.

The ministry while stating the government’s plight, said, “Revenue generation remains the major fiscal challenge of the Federal Government.