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VAT increase: Nigerians may start paying tax on SMS, data

The senate has introduced a bill which seeks to impose a tax on all communication services including electronic messaging and data usage.

The ‘Bill for an act to establish the communication service tax’ introduced for first reading during Wednesday’s plenary session, recommended a 9% charge for using the service

It specifically provides that such tax shall be levied on electronic communication services such as voice calls, SMS, MMS and internet data usage both from telecommunication services providers and internet service.

Ali Ndume who sponsored the bill said if passed, the levy will replace the 2.2% increase in value-added tax which the federal government recently proposed.

The federal executive council (FEC) had approved an increase in value-added tax (VAT) rate from 5% to 7.2%.

However, this is subject to an amendment of the VAT act of 1994 by the national assembly.

Briefing journalists after the plenary session, Ndume said rather than increasing VAT, the communication tax would distribute wealth more equitably.

“There shall be imposed, charged payable and collected, a monthly communication service tax to be levied on charges payable by a user of an electronic communication service other than private electronic communication services,” Guardian quoted Ndume as saying.

“The tax shall be levied on electronic communication services supplied by service providers.

“For the purpose of this clause, the supply of any form of recharges shall be considered as a charge for usage of electronic communication service.”

 

 

– The Cable

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About Delia Innoma

Delia Innoma is a prolific writer, promoter, artist manager with full professional proficiency in English, German and Igbo languages. She studied accounting and computer programming at the Institute of Management and Technology Enugu and Germany respectively. Delia is also a devoted mother of two and she founded the Diamond Celebrities Magazine. Her sense of responsibility and commitment to the Christian faith are essential forces driving her daily activities.

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