The federal government’s proposed excise tax on telecommunications services has been put on hold.

At the first meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector on Monday in Abuja, the Minister of Communications and the Digital Economy, Isa Pantami, made this announcement.

According to the minister, there are already too many taxes on the telecoms industry.

He said that he opposes the tax’s introduction since it will raise the price of telecommunications services.

The Federal Government said that it would start enforcing its proposed excise levies on communications services and alcoholic beverages in 2023 through the Budget Office of the Federation.

The five percent excise duty is part of the provisions of the Finance Act 2020 which was not implemented.

When implemented, the excise duty would rise to 12.5 percent.

Pantami had kicked against the excise duty saying it was passed without due consultation.

The Minister of Finance Budget and National Planning, Zainab Ahmed, had accused him of sabotaging government efforts, adding he cannot claim ignorance of a policy approved by the Federal Executive Council.

She said, “In view of the position of Prof. Pantami, there could be the question of whether he was absent in the whole processes that resulted in the Finance Act, which is a product of both the National Assembly and Federal Executive Council.

“Suffice this to say that before the Act, the Finance Bill would have been through the FEC of which Prof. Pantami is a member and the National Assembly. In other words, he was involved in the making of the Finance Act which spells the said excise tariff hike policy.”