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FIRS answerable on 7.5% VAT deductions on voice calls, SMS – Pantami



The Office of the Minister of Communications and Digital Economy, Dr Isa Ali Ibrahim (Pantami) has responded to queries from telecom subscribers over the recent Value Added Tax (VAT) deductions on voice calls and text messages by telecommunication operators.
Digital Economy

Dr. Isa Pantami

A statement signed by the Spokesperson to the Minister, Uwa Suleiman (Mrs), noted that the Office has has been inundated with complaints and enquiries concerning the recent 7.5% VAT deductions on voice calls and text messages, by some Mobile Network Operators (MNOs).

The Office has therefore directed inquires to the Federal Inland Revenue Service (FIRS) for further notification on why telecos are charging extra 7.5% on the services. recalls that President Muhammadu Buhari had on Monday, January 13, 2020, in State House, signed the 2020 Finance Bill into law, which officially raised the Value Added Tax, VAT, rate in the country to 7.5 per cent.

This is sequel to its passage by the National Assembly and subsequent forwarding by the legislature to the President for assent.

Now, Suleiman (Mrs) has told the subscribers that while the Minister appreciates the support and efforts of well meaning Nigerians who have sought clarifications in a civil manner, “we wish to inform the general public that the issues of VAT, do not fall under the Ministry’s purview.

“The office of the Honourable Minister of Communications and Digital Economy is not mandated to handle VAT.

“In the same vein, we also wish to notify the general public that contrary to popular opinion in some quarters, the Honourable Minister of Communications and Digital Economy had no prior consultation or awareness about the development.


How telecom subscribers are reacting to new 7.5% VAT Charges on services

“All further enquiries and clarifications may henceforth be directed to the Federal Inland Revenue Service (FIRS), being the proper institution for tax matters.

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“The Honourable Minister assures all Nigerians that under his leadership, the interest of all Nigerians will be protected”, the statement concludes.

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