It has been revealed that the Federal government of Nigeria is planning on taking nine percent tax on SMS, MMS, phone calls, and pay TV bills in Africa’s largest telecommunications market Nigeria, this is as a bid to get out of the current recession the country is in.
Minister of communications, Adebayo Shittu, who spoke on he issue earlier said the proposed plan will generate as much as N20 billion for the federal government on a monthly basis, which is about N240 billion in a year.
In his words:
I have been reliably informed that the projected earnings from this effort is over N20 billion every month, which is an attraction to the government for funding our budget deficits
Shittu later added:
this government has a human face twined around its decisions,” stating that it would consider the masses before implementing such.
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It should also be noted that the Communication Service Tax (CST Bill 2015), having passed its first reading in the house of reps, may soon be on its way to becoming a law after it scales through its second reading of course, in simple terms, Nigerians may have to give N9 on every N100 recharge.
Our appetite as a government to increase revenue makes this bill worthy of our consideration,” Shittu also stated.
Shittu, further confirmed that the country has achieved only 10 percent broadband penetration, which is not up to the 30 percent mark set by the International Telecommunications Union (ITU) for 2018.
If we are to catch up with lost ground and meet up with the expectations of the global community in the area of affordable broadband service, we have to incentivise the populace by helping to aid access to low cost data service subscription
president of Lagos Chamber of Commerce and Industry, Nike Akande, who weighed in on the issue said for this to work, the FG, must balance revenue generation against friendly tax policy. She has also been joined by the following bodies;The National Association of Telecommunications Subscribers (NATCOMS), Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), who have all also expressed their opposition.
So guys, whats your take on this? Will you be willing to give the FG N90 From Every N1,000 airtime you recharge to enable the nation come out of this recession?
Let us know your thoughts in the comment section.