The national assembly has introduced a proposal to impose a five percent excise duty on telecommunications services, gaming, betting, and lottery activities.
In July 2023, President Bola Tinubu signed four executive orders, including one that suspended the 5 percent excise tax on telecommunication services to reduce the negative impact on businesses and households.
However, the national assembly is now seeking to reintroduce the excise duty through an executive bill titled “Nigeria Tax Bill 2024.” The bill suggests that the excisable transaction amount is the charge for the service by the provider, “both in money or money’s worth.”
The bill further states that “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.”
Additionally, the proposal addresses currency exchange transactions involving the naira, whether conducted within or outside Nigeria.
It mandates that such transactions must not exceed the official exchange rate authorized by the Central Bank of Nigeria (CBN).
If the exchange rate surpasses the CBN-authorized rate, the excess must be paid as excise duty by the seller on a self-assessment basis, as specified by the Nigeria Tax Administration Act.
