By Naomi Uzor
Speaking at a stakeholders’ meeting organised by the Lagos Chambers of Commerce and Industry, LCCI, on CST bill which seeks to levy nine per cent on subscribers for the use of the various communication services, Shittu said the outcome of deliberations on the bill would form the basis of his advice to the President.

The services include voice call, SMS, MMS, Data usage from telecommunication service providers, internet service providers and Pay TV Stations.

He noted that introduction of new taxes without harmonising existing ones would put pressure on the country’s tax system thereby making it unattractive to investors.

According to the minister”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.”

He said that the government’s efforts at increasing its revenue made the bill worthy of consideration.

“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 said that the government would provide an enabling environment for the ICT and telecommunication sector to thrive through the enactment of relevant legislation.

Mrs Nike Akande, President of LCCI called for a friendly tax environment especially in view of the difficult business environment.

“We know that the government is seeking to diversify its revenue base in the light of dwindling oil revenue. But it is also true that the private sector players will like to see an investment friendly tax environment, especially in the light of the prevailing high cost of doing business in the country. It is important to balance these two positions.”

Mr Bimbo Atilola, Chairman, LCCI Taxation and Commercial Law Committee said that the bill negated the principle of neutrality in taxation, as it would affect consumers’ behaviour through reduced spending. He appealed that the passage of the bill be suspended to allow for rapid growth of the telecoms sector, in line with the Nigerian National Broadband Plan.

“If the bill must be passed into law, NASS should make the telecoms sector exempted under VAT Act and the rate reduced from nine per cent to five per cent. There is a need to protect the ultimate interest of the final consumers of the service,” Atilola said.

Mr Taiwo Oyedele, Partner, PriceWaterCoopers said that the N20 billion monthly projected revenue from the bill was unrealistic and based on assumption.

According to him, increased taxation will reduce the consumption pattern of consumers, lower investment in the sector, thereby translating to reduced revenue.

Mr Teniola Olusola, President, Association of Telecommunications Companies of Nigeria (ATCON) said that their members were overburdened with multiple taxation.

He urged the government to discontinue the bill, adding that it would reduce inflow of FDI into the sector, reduce subscribers level of data consumption and affect contribution of the sector to GDP. Engr Gbenga Adebayo, President, Association of Licensed Telecommunication Operators of Nigeria (ALTON) said that the bill if passed into law would retard the growth of the sector.

Source: http://www.vanguardngr.com/2016/08/nigerians-pay-9-tax-calls-sms-mms-data-others/

Fools

Hehehehe

The zoo in its glory

A criminal entreprise

Now they want to tax data usage

Ndi ara

The old goat shittu is not talking about making every home access fibre

Its how to steal money from the poor when they make a call

They tax my bank transactions now they want to tax my call credit too?

Barawo Shege banza

SMH for this Government Bad news everywhere anyway today is my birthday I'm expecting a call from Dangote and Bill Gates just like he did to Omotola's son

Lemme just buy fuel for thunder generator. No b small thunder go faya una.

Kuku Tax us for being alive

The keep on increasing everything and Zombies keep on supporting this corupt government .there's no policy Apc have make for the interest of common man instead the are increasing hardship in the country

I regret supporting and voting for Buhari. He has nothing to offer. Confused government.

Buhari the tax collector

Govt of the tax masters. Thunder fire all the people making life hard for good citizens of naija.

* Under Goodluck Jonathan...
Orezi: 1million in my pocket... Davido: Emi omo baba olowo...
* Under Mohammodu Buhari...
Orezi: Double ur hustle
Davido: Biko yem ego
Nigeria na only GOD fit save us

Why not kill us at once??....... While they get allowance for sms, data, mms, etc we buy from our meagre salaries.... Still they want to take all away from us. Rubbish.

My mind is out of this country. Patapata.
So i will graduate now, start working, and those people will collect everything. Instead of looking for ways to make information cheaper, they looking for ways to make it cost, didn't they know the value of information in national development?

you go still tax us for having a girlfriend or buying vasleing

I love this government, never disappointing.

Hnnnn

I totally agree with this President of ATCON, this would worsen the already bad case of double taxation.

Additionally, I think this shows a total lack of ingenuity and ideas. I say so because, here they are, so excited about introducing this as an answer to the drive of the government for revenue, forgetting that those who would have to pay are already crumbling under the weight of poverty and lack. They just cannot think of alternative ways of bolstering the economy, so, they gloss over the problem and take the easy route which would culminate in adding more stress to people.

The most painful part of it all is that, this sounds like a bill which President Buhari would speedily give his assent to.

This people wan finish us

Wahala dey o.... Buhari na till we die finish b4 u know that there's economic crunch?
Stop adding pressure on ordinary Nigerians

lonelydora:
I regret supporting and voting for Buhari. He has nothing to offer. Confused government.

I wanted to give you free Wailers form but because of this Govt u voted in, you have to pay 200% tax for the air you will breath while filling the form.

instead of dem to make policies dat will better d services provided by network providers dey re thinking of how to include tax....... waiting for one zombie to come n say d ryt step in d ryt direction let me ask him wat dey ve done wit d #50 from credit account

I think this Govt is getting things wrong. Truth is a thorough Tax system isn't in place in Nigeria and because Govt needs other sources of revenue, They will need to explore other means for generating revenue. But the approach of this Govt is totally wrong. The telecoms system is already organised and Tax revenue is in place. There are many sectors which they can explore to generate tax. Simply put the Govt is just a very lazy one, they can't dare to innovate because they are not in tune with current practices. Rather than hire professionals to assist it has been mediocre appointments based on loyalty....Rubbish

This government na wa o

This is totally unacceptable! This guys should know that 2019 isn't far away if they continue this way.... Beauty of democracy.

Noted

How did we get into this mess really?

Ok

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Hian!! Na wa o