Nigerians faces difficulties As FG imposed a 5% levy on recharge cards

Nigerians faces difficulties As FG imposed a 5% levy on recharge cards

On telephone recharge cards and vouchers, the federal government has levied a 5% excise fee.

According to Naija02, President Muhammadu Buhari signed the Finance Act 2020, which was presented by Minister of Finance, Budget, and National Planning, Zainab Ahmed.

Recharge cards and vouchers are believed to be among the new items on the list of commodities that will be taxed under the Finance Act.

The new excise duty on recharge cards would boost call charges and add to existing taxes placed on telecoms operating in the nation, despite the fact that no rate was specified in the legislation.

The minister has directed the Nigerian Customs Service to begin collecting 5% excise on mobile phones, energy meters (components), and set up boxes, according to a circular viewed by TheCable.

The Buhari administration is projected to gather at least N150 billion from the tax, while customs would get approximately N10 billion, which is a 7% collection charge.

Section 21 (1) of the Act describes goods liable to excise duty as “Goods imported and those manufactured in Nigeria and specified in the first schedule of this Act shall be charged with duties of excise at the rate specified under the duty column in the Schedule.”

Subsection 2 further added that “telecommunication services provided in Nigeria shall be charged with duties of excise at the rate specified under the duty column in the Schedule as the President may by Order prescribe pursuant to section 13 of this Act”.