FG to introduce tax on voice calls, SMS, MMS, data, PayTV

folarin okunola

March 7, 2016 10:07 AM

The bill is titled ‘Communication Service Tax Bill (“CST” or the “Bill”) 2015’ and seeks to impose, charge and collect a Communication Service Tax (CST) which will be levied on service fees payable by users of electronic communication services at 9%

Nigerian President Muhammadu Buhari speaks during German President Joachim Gauck's visit to the State House in Abuja, Nigeria February 11, 2016. REUTERS/Afolabi Sotunde

According to media reports, communication service subscribers could pay additional tax if a new Bill now being introduced by the National Assembly gets passed into law.

Communication services that may be liable to the tax include voice calls, SMS, MMS, Data and Pay according to the bill.

The proposed tax is seen as a move by the government to shore up its coffers following the steady drop of oil prices and the country's dwindling foreign reserves.

There isn't much to go on about this bill, but I doubt the mass public is going to support it.

PriceWaterHouseCoopers (PwC), in a publication titled 'Tax alert', says that if the bill is passed and made law, it will require all service providers to file monthly tax returns with the Federal Inland Revenue Service (FIRS), along with strict penalties for non-compliance.

Furthermore, the FIRS will also be responsible for the collection of the tax and its payment as well as any interest and pay into the Federation Account, while the Federal Government will be responsible for the administration and management of the funds.

Stay with Pulse Tech to keep you updated with developments on this matter.

folarin okunola