Welcome, Guest: Join Nairaland / LOGIN! / Trending / Recent / New
Stats: 2,425,720 members, 5,445,230 topics. Date: Thursday, 27 February 2020 at 06:51 PM

Communication Tax: Subscribers, Business Leaders Ready For Showdown - Phones - Nairaland

Nairaland Forum / Science/Technology / Phones / Communication Tax: Subscribers, Business Leaders Ready For Showdown (9799 Views)

An Open Letter To Globacom On Behalf Of All Glo Subscribers - Naijatechguy / 9mobile Recorded The Highest Number Of Porting Subscribers, See Full Reports! / Hilarious Replies From Glo Subscribers On Facebook Fans Page(pics) (2) (3) (4)

(1) (2) (3) (Reply) (Go Down)

Communication Tax: Subscribers, Business Leaders Ready For Showdown by gulfer: 6:59am On Aug 23, 2016
The proposed communication tax is one tax too many, and may trigger widespread reactions if the bill is eventually passed into law, writes OZIOMA UBABUKOH

Although the ‘controversial’ Communication Service Tax bill has passed the first reading at the House of Representatives, The PUNCH can reliably state that the major telecommunications companies in the country are all against it, and have vowed to do all they could to resist it.

For the telecoms firms and subscribers, it is seen as a wrong approach to generating revenue amid a sinking economy and an impoverished people.

“We are going to mobilise the Nigeria Labour Congress, the civil society organisations and the entire nation against it.



“We shall bring the government of Nigeria to a standstill should the lawmakers at the National Assembly continue with the process of passing that bill into law.

“In fact, we must not even allow a second reading of the bill, or allow them to hold a public hearing, because most times when you allow them to hold a public hearing, they do so in secrecy just to ensure that people do not oppose their (lawmakers’) decision,” the President, National Association of Telecommunications Subscribers, Mr. Adeolu Ogunbanjo, told our correspondent.

Upon passage and assent, the CST bill, which is currently in the Senate, will compel telecommunications service subscribers, including satellite television providers like DSTV, to pay additional tax on services rendered by their providers.

The others include GoTV, Startimes, CONSAT and other telecoms operators. Services such as voice calls, SMS, MMS, data and pay TV will all have an additional nine per cent tax imposed on the services; meaning that the subscribers will pay the usual cost of service, plus nine per cent of that cost.

“It is one tax too many. Already, there are 26 different taxes being paid by Nigerians. Again, all the various components of telecoms are being taxed; for instance, the Subscriber Identification Module card, handsets, among others, take about five per cent tax already,” Ogunbanjo said.

He said, “Again, the cybercrime tax that was signed into law last year takes 0.5 per cent of tax.

“Also, when the operators want to lay their fibre optic cables in Lagos, they pay a minimum of N500 per metre tax. And by the time they have laid the cables in several metres, that would have amounted to millions of naira in tax.

“It is even worse outside Lagos, where operators are charged many times over what they pay in Lagos.”

Business leaders, notably the Lagos Chamber of Commerce and Industry, say the Federal Government needs to balance its drive for taxation against the demand of the private sector to have a friendly business environment.

“We know that the government is seeking to diversify its revenue base. But it is also true that the private sector players would like to see an investment-friendly environment, especially in the light of the prevailing high cost of doing business in the country,” the LCCI President, Nike Akande, said.

According to her, the chamber believes that it is in the best interest of Nigerians to have a virile, robust and growing economy. “Creation of a good business environment is imperative to making this proposal happen,” Akande said.

The Partner at PricewaterhouseCoopers, Taiwo Oyedele, said the proposed communication tax as it affects the firm would be over N20m per month.

“But then they have constructed the bill on wrong assumptions and have overestimated, because if the tax on communication and Internet services will be increased, then definitely the users of these services will drastically decrease, resulting in them making way less than they anticipated and estimated,” Oyedele said.

He said research had proved that Nigeria was one of the lowest tax-compliant countries, despite having a population of about 180 million people.

“There are only 10 million taxpayers from the 36 states. Therefore, we expect that policies made should leverage the telecommunications sector to help expand tax rate, not imposing tax on telecommunication services, thereby discouraging the sector instead of encouraging it,” he said.

He stated that the government should focus more attention on tax evaders and increase the number of taxpayers, rather than imposing taxes on telecommunications, which might end up retarding the wheel of progress in the economy and country as a whole.

The President, Association of Licensed Telecoms Operators of Nigeria, Gbenga Adebayo, said the proposed law would lead to a decrease in the flow of revenue, as investors would take their investments to other countries with lower tax rates.

“Nigeria needs investment so as to provide employment, especially to our growing youth. Owing to that increase in call rate, there will be drastic reduction in the composition of data usage, as well as voice call, SMS, MMS, pay tax and the like, which will reduce usage and the country’s GDP,” Adebayo said.

“ALTON’s position as regards the nine per cent tax is that when the legislature is drafting policies, the policies should be investment-friendly, which will in turn be beneficial to the whole country and economy at large,” he added.

Meanwhile, findings from investigations conducted by our correspondent show that while Nigeria’s tax rates are not the highest comparatively, the country is doing very poorly in terms of the time taken to comply and the number of payments (which together impact negatively on the ease of doing business and investor confidence).

(See graph 1 as illustrated)

For the second graph (tax and regulatory payments), our correspondent found out that sales and sector-specific taxes constituted the largest chunk of tax payments.

(See graph 2 as illustrated)

However, the Minister of Communication, Adebayo Shittu, said there were many areas in Nigeria where there were no access to Internet, to telephone and the like.

“By 2018, we hope to have accomplished 30 per cent of widespread use of telecommunications in all the areas of Nigeria, but presently, we have accomplished only 10 per cent. But then there is a probability that with the nine per cent tax rate charge, accomplishing this will be almost impossible,” Shittu said.

A top executive in one of the four major telcos in the country described the communication tax as a “Greek gift.”

Pleading not to be mentioned, he said, “In fact, that is a Greek way of internally generating revenue, because you cannot claim to be alleviating the sufferings of the people, yet you turn back to take whatever you must have given to them.”

The idea to go ahead with the passage of the bill, despite earlier resistance, may have pitted the telecoms firms against Shittu.

According to the telcos, the feeling is that Shittu has done little or nothing to stop the lawmakers from moving to pass the bill.

Another telecoms employee, who spoke on condition of anonymity, said, “If the minister, despite our pleas for understanding, could still remain calm, even in the midst of the hardship being experienced by Nigerians (subscribers), then it is obvious that he (the minister) has got nothing to offer the country.”


http://punchng.com/communication-tax-subscribers-business-leaders-ready-showdown/


Meanwhile here's a list of al;l taxes around the world: https://en.wikipedia.org/wiki/List_of_taxes

1 Share

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by LORDOFAFONJAS: 7:01am On Aug 23, 2016
click like if you feel buhari needs brain upgrade or share if you feel otherwise




grin grin grin grin grin grin grin can't wait for 2019 to come grin grin grin grin grin grin

92 Likes 3 Shares

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by bonechamberlain(m): 7:25am On Aug 23, 2016
We get and pay for everything for ourselves in this country, what has taxation done for Nigerians, yet this tax govt keep on taxing, this is as a result of having a government composed of short sighted and antediluvian people.

15 Likes

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by mjames: 8:26am On Aug 23, 2016
Evil everywhere. We shall resist it with our last blood

1 Like

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by Nobody: 8:55am On Aug 23, 2016
LORDOFAFONJAS:
click like if you feel buhari needs brain upgrade or share if you feel otherwise

Lame way to garner 'likes' from frustrated individuals like yhu.....

Smh...

8 Likes 1 Share

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by veekid(m): 8:55am On Aug 23, 2016
Summary please
Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by Nobody: 8:55am On Aug 23, 2016
undecided
Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by SuperBlack: 8:56am On Aug 23, 2016
Nigeria kept on collecting money from us yet they are doing nothing with it.

2 Likes

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by inkrey: 8:56am On Aug 23, 2016
LORDOFAFONJAS:
click like if you feel buhari needs brain upgrade or share if you feel otherwise
u have mind o.. See wah ur saying in this "operation arrest buhari haters"

1 Like

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by CriticMaestro: 8:57am On Aug 23, 2016
Ccc
Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by SuperBlack: 8:57am On Aug 23, 2016
LORDOFAFONJAS:
click like if you feel buhari needs brain upgrade or share if you feel otherwise
Stop Begging for Like. Only those that don't know Buhari from 1983 are allowed to complain.

2 Likes

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by Redlabel: 8:58am On Aug 23, 2016
This too much for N igerians to bear
Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by Acidosis(m): 8:58am On Aug 23, 2016
They have taken the wuri-wuri omo-onile extortion policies of Lagos to Abuja.

When you lack new generation ideas, the only option left is EXTORTION.

Leaders with SSCE in International Business, and PhD in Recession and Taxation.

Well done Nigerian leaders. The only sets of leaders in the world who prefer to sew uniforms for extortionists to parade and raid companies with ideas.

Good morning Nigerians, the ever suffering and smiling generations.

6 Likes

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by BIGTinfotech: 8:58am On Aug 23, 2016
One very confused administration.






2019 biko where are you?

1 Like

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by demarc001: 8:59am On Aug 23, 2016
Which Showdown? Buhari will always have his way.
Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by macphilip: 8:59am On Aug 23, 2016
what about the 50N stamp duty on bank deposit
what happened to it

3 Likes

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by diportivo: 8:59am On Aug 23, 2016
As usual, the president will take the blame

Those thieve.s in the national assembly that av made it pass the first reading won't complain o

And una wey no like the president won't hold ur lawmakers to order....na so so buhari

The legislators are a bunch of jokers that don't care about their poor constituents

1 Like

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by easyfem(m): 9:01am On Aug 23, 2016
Some pple are just too stupid sha , someone is talking abt passing bill in d house of rep and some ipod idiot are blaming buari for it .... Buari no dey read nairaland oooo... Awon weyrey
Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by ANBAKO: 9:02am On Aug 23, 2016
This people are just taxing Nigerian so as to continually finance their lavishness and extravagant take home and lifestyle....

Enemies of Nigeria...Fall & die

Do good for good to come your way

2 Likes

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by Vendoor(f): 9:02am On Aug 23, 2016
The more you look the less you see....

Sorry for Nigeria!
Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by 989900: 9:02am On Aug 23, 2016
We shall bring the government of Nigeria to a standstill should the lawmakers at the National Assembly continue with the process of passing that bill into law.

Aye! Aye!! All day!

"We weeel not take it"!
Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by Ucheosefoh(m): 9:03am On Aug 23, 2016
ModsAreMad:


Lame way to garner 'likes' from frustrated individuals like yhu.....

Smh...

2 Likes

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by DAramis: 9:03am On Aug 23, 2016
With the way this government is going, I won't be surprised if they tax "water" and our "urine" very soon

1 Like

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by lirusehn(m): 9:03am On Aug 23, 2016
enough of reading ipob bullshyts!! undecided
Enough of seeing Zombies f*ckd up tag undecided




Gej is to be blamed, cause that son of a biatch conceded defeat.

May God punish him undecided

2 Likes

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by darocha1(m): 9:03am On Aug 23, 2016
lol... They are only joking. am sure they dnt mean it
Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by Akinola2543(m): 9:04am On Aug 23, 2016
chai
Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by Thisis2raw(m): 9:06am On Aug 23, 2016
They should just tax us for living. Nigerians are now paying more than even the British them
Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by ephi123(f): 9:07am On Aug 23, 2016
Wicked Government!! angry
With all the suffering people are experiencing already, they still want to make it worse embarassed

This is what you get when you appoint ministers that have NOTHING upstairs. Ministers that cannot think of innovative means to generate revenue but to push people further into poverty.

1 Like

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by IllegalMoney: 9:07am On Aug 23, 2016
grin



Buhari is a heartless dictator
Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by gulfer: 9:08am On Aug 23, 2016

Re: Communication Tax: Subscribers, Business Leaders Ready For Showdown by prinsam30(m): 9:08am On Aug 23, 2016
In A Nutshell



We No Go Gree

(1) (2) (3) (Reply)

Why Tax On Calls, SMS, Data, Others Faces Setback / Got A Call From An American Phone Number From Naija / I Just Unlocked My Glo Usb Modem

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2020 Oluwaseun Osewa. All rights reserved. See How To Advertise. 143
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.