On July 6, 2023, President Bola Tinubu signed four executive orders, including the suspension of the 5 percent excise tax on telecommunication services to ameliorate the negative impact of tax adjustments on businesses and households.
According to an executive bill, titled ‘Nigeria Tax Bill 2024,’ the national assembly is seeking reintroduction of the excise duty.
The bill proposed that the amount of an excisable transaction is the amount chargeable for the service by the service provider, “both in money or money’s worth”.
“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,” the document reads.
Also, where an exchange of currency transaction involving the naira is conducted within or outside Nigeria, the national assembly suggested that the exchange rate must not exceed the prevailing rate at the official market, authorised by the Central Bank of Nigeria (CBN).
The legislature said where the exchange rate of the transaction exceeds the prevailing exchange rate at the official market authorised by the CBN, the excess should be payable as excise duty by the seller on a self-assessment basis as provided in the Nigeria Tax Administration Act.
Mathew
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