This archive report was first published on 4 October 2019.
On October 4, 2019, Nigeria's Senate proposed a bill that would introduce a 9% tax on communication services, including voice calls, SMS, data, and pay-per-view TV stations.
The proposed Communication Service Tax (CST) aims to diversify the country's economy and reduce inequalities in the economy, according to its sponsor.
Senator Ali Ndume, the bill's sponsor, believes that CST would encourage wealth distribution without affecting the ordinary citizen. He also asserts that the bill is a better alternative to a proposed 2.2% increase in VAT, which he claims would increase the cost of goods beyond the reach of the common man and spell a negative impact on the economy.
Telecoms Oppose Communication Service Tax ¶
Telecommunication operators have expressed opposition to the bill, warning that it would add a fresh burden to citizens. According to Gbenga Adebayo, Chairman of ALTON, the bill's passing would increase the end-user call tariff.
ATCON has also vowed to resist the Communication Service tax, which it fears might reduce the number of internet users.
The bill awaits a second reading before it proceeds to the appropriate committee for further legislative action.
