Home Business Despite the FIRS Tax Avoidance Promise, FG may consider 5% telecom taxation to boost non-oil revenue
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Despite the FIRS Tax Avoidance Promise, FG may consider 5% telecom taxation to boost non-oil revenue

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Despite the FIRS Tax Avoidance Promise, FG may consider 5% telecom taxation to boost non-oil revenue
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The Federal Government of Nigeria, through the Federal Inland Revenue Service (FIRS), is considering taxing telecommunication (telecom) services, among other fiscal measures, to boost the country’s non-oil revenue despite its promise not to increase taxation.

To remind you, earlier in mid-October 2023, FIRS promised and, on March 28 2024, reiterated its commitment to avoid additional taxation on corporate organisations in Nigeria.

The President gave a directive that he wants a single-digit tax in the country, meaning that the maximum number of taxes we will have after the work of the Presidential Committee on Fiscal Policy and Tax Reforms will be nine taxes, says the chairman of FIRS, Zacch Adedeji.

In a twist of events, the FIRS is considering introducing a telecom tax to secure the World Bank’s $750 million loan.

Although, in July 2023, President Bola Tinubu issued an order suspending import tax increases on specific cars, he stated a five per cent excise duty on telecoms.

However, a report from the World Bank suggests the federal government may consider telecom taxation and other fiscal measures that were previously halted to secure a fresh $750 million loan from the World Bank.

This is a project (project ID P177308) implemented by the Federal Ministry of Finance, Budget and National Planning to secure a $750 million loan, which is still in the pipeline.

The $750 million yet-to-be-approved loan under World Bank’s Accelerating Resource Mobilisation Reforms (ARMOR) program is to improve the government’s ability to utilise its domestic resources while preserving oil-generated revenue in compliance with tax as non-oil input or revenue generation for financial stability in the country.

Read: Nigeria sets dangerous precedent detaining execs and crackdown on Crypto – Binance

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