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TELECOMMUNICATION: Call Tariff Hike Looms As FG Slams 5% Duty On Recharge Cards

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President Muhammadu Buhari has approved the collection of five percent as excise duty on telephone recharge cards and vouchers.

The charge is part of new items on the list of goods liable for excise duty on the Finance Act in the country.

Excise duty is a levy charged at the time of manufacturing. It is also a form of indirect tax on the sale or consumption of certain goods, products, services, or activities such as tobacco, alcohol, narcotics, gambling, etc., mainly to discourage their use and consumption. Nigeria’s Finance Act has extended the list to include beverages, non-alcoholic drinks, etc.

According to a circular, Zainab Ahmed, minister of finance, budget, and national planning, directed the Nigerian Customs to create a tariff line for the collection of the excise on mobile telephones, and electricity meters (components) and set up boxes at five percent.

It was gathered that the federal government is expected to raise at least N150 billion from the duty while customs will pocket about 10 billion, a 7 percent collection fee.

The circular conforms with another list of excisable items by customs to include telephone recharge cards and vouchers at five percent.

TheCable also understands that the collection was part of new items on the 2020 Finance Act signed by President Buhari. Although no rate was not stated, it is clear that the president might have okayed the collection of the duty at five percent as empowered to do by the Act.

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”.

In the current (2021) finance act, a new section was inserted to include “excise duty on non-alcoholic, carbonated and sweetened beverages shall be charged at a specific rate of N10 per liter”.

The new 5 percent levy on recharge cards will increase call costs and add to other taxes levied on telcos operating in the country. Some of these levies include the right of way charges, National Information Technology Development Fund Levy, National Cybersecurity Fund, and Annual Operating Levy in addition to existing statutory taxes like tertiary education tax, companies income tax, and value-added tax.

On Wednesday, telecommunication companies under the Association of Licensed Telecom Operators of Nigeria (ALTON) asked for upward reviews in voice calls, short message services (SMS), and data costs. In a recent letter addressed to the Nigerian Communications Commission (NCC), ALTON cited the rising energy costs and high operating expenses as major reasons.

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Presidency, Rare Privilege I Won’t Squander — President-Elect, Tinubu

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The President-elect, Asiwaju Bola Tinubu, on Wednesday, said he won’t disappoint Nigerians when he assumes office.

Tinubu said he could not afford to squander his mandate as the nation’s next President because it was a dream that he spent his life perfecting.

Tinubu, who clocked 71 on Wednesday, said this in a statement titled “My 71st Birthday Message to Nigerians.”

He reiterated that his swearing-in ceremony in two months’ time would signify his preparation for the task ahead.

He said, “Dear Nigerians, I thank all of you who have expressed your goodwill towards me on the occasion of my 71st birthday. I received your kind words with great pleasure and was profoundly touched by the depth of your care and support. Above all, I thank God Almighty for the life He has given me, and for all the opportunities and doors He has opened to me along the way.

“This year, in particular, I see this day as one of deep reflection. The spiritual meaning and significance of the holy month of Ramadan matter to me much more than the celebration of any individual milestone. Yet, this is my first birthday as the President-elect. A few weeks back, Nigerians gave me the honor of a lifetime. In exactly two months, on the 29th of May, my term in office will begin. It is a rare privilege indeed, and one that I do not take lightly and shall not squander.

“With such a privilege already granted to me, I will not go so far as to suggest I am due any birthday presents this year. I have already been given the greatest gift. A chance to lead and fulfill destiny. An opportunity to champion your aspirations and to bring about the Nigeria of your dreams.

“I will, instead, use this day as an opportunity to reiterate my commitment to the great and important task of rebuilding our nation and renewing the hope of the Nigerian people. I campaigned hard and made important promises.

“ Those promises were not mere words professed glibly or cynically to win support. They represent a bond that binds me to the task of creating a better Nigeria for the benefit of every Nigerian, whether you voted for me or not. I have prepared for this moment all my life, I will not fail. Henceforth, may growth, hope, peace, and compassion stand proudly and ring loudly throughout the land. May we find the right way and the good courage to turn our beloved country into a strong, just, and prosperous home for all. May Almighty God bless all Nigerians.”

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BREAKING: Popular Nollywood Actor, Yul Edochie Loses First Son, Kambilichukwu

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Emerging reports indicate that Nollywood actor, Yul Edochie has lost his first son, Kambilichukwu Edochie.

It was gathered that Yul’s first son was rushed to the hospital after falling unconscious.

A source who spoke to Vanguard on condition of anonymity revealed that Yul has confirmed Kambilichukwu’s death at the time this report was filed.

May’s sister who was at the scene said the boy read throughout the night preparing for his exam today. After his exam in school, he joined his mates to play football and that’s when he developed a seizure and was rushed to Mother and Child Hospital. All efforts by the doctors to resuscitate him proved abortive, the report added.

This is coming two months after Yul Edochie and his first wife May, celebrated their first son and second child as he turned 16; showering encomiums and blessings on him.

“My first son just turned 16. Happy birthday to you Kambi Leo Yul-Edochie. Many more great years I wish you with loads of accomplishments and greatness. May God be with you always. Daddy loves you,” his father wrote on Instagram

Yul, the last child of veteran actor, Pete Edochie, married his wife, Mary, at 22 after they both dated for six years. He followed in his father’s footsteps and debuted in the movie industry a year after his marriage.

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I’m Not Afraid Of EFCC Probe After Leaving Office — Nyesom Wike

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Nyesom Wike, governor of Rivers, says he is leaving office as a “fulfilled” public servant.

Speaking on Wednesday at the inauguration of the Rumuigbo internal road network in the Obio-Akpor LGA of the state, Wike said he is not afraid of being investigated by the Economic Financial Crimes Commission (EFCC) after leaving office on May 29.

Wike said he won’t run away from the state to evade any probe by the anti-graft agency, adding that his administration has done several projects to justify how public funds were spent.

“I’m happy that I am leaving office fulfilled. I’m leaving office with my shoulders high. I am leaving office very well,” Wike said.

“I’m not leaving office to run away so that EFCC would not come (to probe me). I’m leaving office and I will stay here (Rivers). I am not going anywhere.”

Wike asked Siminialayi Fubara, the governor-elect, to show EFCC the projects completed by his administration if the commission visits the state.

Wike’s comment comes days after Abdulrasheed Bawa, chairman of the EFCC, reportedly said the commission will go after some outgoing governors and other public officials after May 29.

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