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Why Tax On Calls, SMS, Data, Others Faces Setback by ijustdey: 11:28am On Oct 08, 2019
Ife Ogunfuwa



THE proposed tax on voice calls , short messaging service , data services , and pay tv subscription is facing some resistance from experts, especially stakeholders in the telecom industry .

The Senate last week proposed the CST bill as a way for the Federal Government to plug the gap in revenue .

The telecommunications industry is crucial to the economy but faced with myriads of challenges from the ecosystem one of which is the multiple taxes operators have to pay .

Reports show that the three tiers of government – federal , state and local government – collectively impose over 40 levies and taxes on telecom operators .

While exploring opportunities for improving government revenue , the 9 th National Assembly revisited a Communication Service Tax Bill that had been shelved two years ago .

The proposed bill sponsored by Senator Ndume Ali seeks to impose and collect communication services tax or levy on charges payable by consumers of electronic communication services such as voice calls , SMS , data usage and Pay per View TV stations at the rate of nine per cent .

The tax , which will be collected by the Federal Inland Revenue Service and remitted to the Federation Account , is to be paid together with the electronic communication service charge payable to the service provider by the user of the service .

The President , Association of Telecommunication Companies of Nigeria , Olusola Teniola, said the proposed nine per cent Communications Service Tax would amount to double taxation on voice , SMS and data service if the bill was allowed to scale through.

This, according to him , is because five per cent Value Added Tax have been paid on those services .

He said, “ This represents an additional burden when applied to a subscriber base of 173 million . If the passage of this bill goes through, it would negatively impact Nigerians and foreigners that use these services . The implementation of this CST bill would take the affordability of data services out of the reach of the citizenry . ”

Therefore , Teniola advised the government to reconsider the passing of the bill , as it would add to the burden of the already suffering Nigerians .
He expressed the fear that an additional tax would lead to loss of revenue to the industry and loss of jobs in the sector .

According to the bill , all service providers are expected to file monthly returns not later than the last working day of the month immediately after the month to which the tax returns and payment relate .

Penalty stipulated by the CST bill for failure to file returns on or before the due date is N 50 ,000 and an additional N 10 , 000 for each day the returns are not submitted.

It stated that a service provider who refuses to provide access to its relevant network for government or its appointed agent commits an offence and is liable to a penalty of five per cent of annual gross revenue of the last audited financial statements.

If the situation persists after 90 days , the bill said Nigerian Communications Commission might be asked to revoke the operating licence of the service provider.

The Chairman of Association of Licensed Telecommunications Operators of Nigeria , Gbenga Adebayo , said the terms of the bill was likely to breach data privacy of Nigerians .

According to him , the bill was offensive to the industry because it would make communication expensive and inaccessible to Nigerians.

“ The bill is badly intended for an industry at a time when we are talking about the availability and accessibility of telecom services . If that bill is allowed to go through, it will deny people access to these services and reduce the value of their recharge ,” Adebayo added.

He said, “ The terms of the bill , which we haven ’t seen , may lead to significant compromise in people ’s privacy because the way by which the collection of the money will be made may require the government to have access to the servers of the operators . ”

He called on the senate to reconsider the proposed tax as it was contrary to the purpose for which they were elected into office.

Stating their perspectives, tax and regulatory analysts at Deloitte, Oluseye Arowolo and Yomi Olugbenro , shared Teniola’ s sentiments saying the CST was a consumption tax , which would be in addition to value added tax that consumers of telecommunication services were already subjected to.

According to them , the proposed tax will reduce the purchasing power of consumers in the midst of rising prices and negatively impact investment climate in the economy.


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1 Like 1 Share

Re: Why Tax On Calls, SMS, Data, Others Faces Setback by JasonScoolari: 11:30am On Oct 08, 2019
wink
Re: Why Tax On Calls, SMS, Data, Others Faces Setback by Johnnyessence(m): 11:42am On Oct 08, 2019
It's still the masses that will feel the brunt more in lifeless buhari government.

19 Likes

Re: Why Tax On Calls, SMS, Data, Others Faces Setback by nnaetobi: 1:20pm On Oct 08, 2019
why is ali ndume notorious with evil.boko haram founder.idiot terrorist

28 Likes

Re: Why Tax On Calls, SMS, Data, Others Faces Setback by yeyeboi(m): 2:50pm On Oct 08, 2019
Ok
Re: Why Tax On Calls, SMS, Data, Others Faces Setback by KayCee92(m): 2:51pm On Oct 08, 2019
grin
Re: Why Tax On Calls, SMS, Data, Others Faces Setback by Carmit(m): 2:51pm On Oct 08, 2019
Shey nairaland is now a porn site ni??
angry

3 Likes

Re: Why Tax On Calls, SMS, Data, Others Faces Setback by sentorial: 2:52pm On Oct 08, 2019
The Nigerian senate are jealous of BBNaija that makes billions from voting sms and are trying to imitate them.

1 Like

Re: Why Tax On Calls, SMS, Data, Others Faces Setback by opalu: 2:52pm On Oct 08, 2019
Okay na
Re: Why Tax On Calls, SMS, Data, Others Faces Setback by bikerboy1(m): 2:52pm On Oct 08, 2019
You start taxing them, they increase the tariffs...

The masses pay for it all.

If you want to save the masses... then regulate the charges across the telecompanies

You regulate the industry, you eliminate competition... the small players in the industry suffers and may even die.

Whichever way... Nigeria is Bleeped

5 Likes 2 Shares

Re: Why Tax On Calls, SMS, Data, Others Faces Setback by wonuks(m): 2:52pm On Oct 08, 2019
grin
Re: Why Tax On Calls, SMS, Data, Others Faces Setback by VillageHead: 2:53pm On Oct 08, 2019
When they remember it will greatly impart on their love ones in the village, they had no option but to rescind from going forward with the proposal.

1 Like

Re: Why Tax On Calls, SMS, Data, Others Faces Setback by naijadrivablog: 2:53pm On Oct 08, 2019
It should, 80% of the masses are poor. Focus on enriching Nigerians and subsequently tax them as they get wealthier.

It is when you plant you expect to rip.

In Nigeria , almost everyone is a Local Government:
1. We generate electricity - generator
2. We Generate water, i.e Borehole and well (konga grin) ( when Water Board should work)
3. Make roads motorable or "leggable" sometimes
4. Build houses, pay high rents
5. After many years of sinking billions into the Power Sector and selling to neighbouring countries (who celebrate years of uninterrupted power supply), we are yet to have power, hence, the masses generate power.
6. ETC

We need good governance, based on merit - not tribal or religious.

19 Likes 1 Share

Re: Why Tax On Calls, SMS, Data, Others Faces Setback by GREATESTPIANIST: 2:53pm On Oct 08, 2019
Re: Why Tax On Calls, SMS, Data, Others Faces Setback by Kaybaba5(m): 2:53pm On Oct 08, 2019
Ko le work
Re: Why Tax On Calls, SMS, Data, Others Faces Setback by ezenwajosh(m): 2:53pm On Oct 08, 2019
Northerns will always impose to fund their jihad and caliphate

They don't understand commerce and economy yet they head many offices and people goes to church praying for betterment of Nigeria...while you know the solution to your problems

1 Like

Re: Why Tax On Calls, SMS, Data, Others Faces Setback by Maldini212(m): 2:54pm On Oct 08, 2019
Gals with huge booooootyy

Are a blessing to humanity

1 Like

Re: Why Tax On Calls, SMS, Data, Others Faces Setback by Asowebdesign: 2:54pm On Oct 08, 2019
Following
Re: Why Tax On Calls, SMS, Data, Others Faces Setback by Carmit(m): 2:55pm On Oct 08, 2019
ezenwajosh:
Northerns will always impose to found their jihad and caliphate

They don't understand commerce and economy yet they head many offices and people goes to church praying for betterment of Nigeria...while you know the solution to your problems

*FUND

4 Likes

Re: Why Tax On Calls, SMS, Data, Others Faces Setback by iluvdonjazzy: 2:56pm On Oct 08, 2019
this government hate the masses.

3 Likes

Re: Why Tax On Calls, SMS, Data, Others Faces Setback by sentorial: 2:56pm On Oct 08, 2019
VillageHead:


Guy repent o!


Jesus is coming!

You people should stop quoting the porn image post. You are only propagating it.

Better, delete the image url in the mentioned post before clicking submit.

1 Like

Re: Why Tax On Calls, SMS, Data, Others Faces Setback by DennisEche(m): 2:57pm On Oct 08, 2019
God bless Mr integrity. If not because of him this would have scaled through., even the proposed toll gate, increase in fuel price,increase in vat and secret payment of subsidy shows how much integrity he has.
Re: Why Tax On Calls, SMS, Data, Others Faces Setback by Maldini212(m): 2:57pm On Oct 08, 2019
VillageHead:


Guy repent o!


Jesus is coming!


My lovely nairaland babes

What's


If yes ,,. Pm me

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