'FG proposing a bill to charge Nigerians 9% tax on calls, SMS, MMS, others' - Minister

folarin okunola

August 18, 2016 6:49 PM

The tax seeks to lay a 9% levy on telecommunication subscribers for users of various communications services including voice calls, SMS, MMS, and data usage.

Minister of Communication, Adebayo Shittu

Yesterday, the Minister of Communication Adebayo Shittu, disclosed that the Federal Government is proposing a bill called the Communications Service Tax.

The tax seeks to lay a 9% levy on telecommunication subscribers for users of various communications services including voice calls, SMS, MMS, data usage, internet service providers and Pay TV stations.

Speaking at an event organized by the Lagos Chambers of Commerce and Industry (LCCI) yesterday, Shittu said the introducing the new taxes without perfecting the existing ones would put pressure on the country's tax system which would in turn make it unattractive to investors.

Shittu said the outcome of deliberations on the proposed bill would form the basis of his discussions and advice with President Muhammadu Buhari.

ALSO READ: Communications minister applauds Delta Innovation Hub

Read his statement below:

"This may also be counter-productive in the long run for our targets on broadband penetration. Our ICT Roadmap gives fresh impetus for implementing existing policies and reviewing any that is inimical to the growth of the sector. My focus on any tax regime will be to align any process that will stimulate the economy and also ensure that the tax system is efficient by widening the tax net. It is also to create an effective framework for tax compliance to protect the poor and vulnerable in the society who nonetheless have to use telecoms services for social inclusion and financial services.”

According to the Minister, the bill is being considered as a way to help increase the revenue generation of the Federal government as the country faces its worst economic recession in the over a decade.

“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. I must be quick to say that this government has a human face twined around its decisions," Shittu said.

The minister further added that the government would provide an enabling environment for the ICT and telecommunications sector to thrive using the enactment of relevant legislation.

folarin okunola