We will get 9% tax on communication services. What are the reasons of that? How does government explain such decision? You’ll find out all the latest economic news here, in this article!
The Federal Authorities are proposing to input a bill, the CST, Communication Service Tax bill, which aspires to charge 9 per cent on the subscribers of telecommunications users of different communication services such as voice calls, MMS, SMS, different data usage by telecom service providers, including pay - TV and Internet service providers.
Communication services providers
On Wednesday Bayo Shittu, The Minister of Communication, made this discovery, speaking at a function organized by LCCI, the Lagos Chambers of Commerce and Industry.
He told that the results of the discussions on the bill will be the basis advice to the president, though he mentioned that the new taxes introduction without the consent of the existing will put pressure on the tax system of the country, thus making it extremely unattractive for investors.
Also Shittu told that the bill was considered as a straight way to rise the income generation of the Federal Authorities.
‘It can also be counterproductive in the long term for our purposes on the level of broadband penetration. Our road map of the ICT gives the newest impetus to the fast implementation of the existing policies and analyzes all that is hostile to the growth of the sector.
‘My attention is focused on any tax regime that can harmonize any process and that can stimulate the economy, and to ensure that our tax system is very effective way to broaden the tax net.
‘Also it is supposed to create extremely effective framework for enforcement of tax legislation requirements to protect the vulnerable and poor in society, which nevertheless have to use telecommunications services for social integration and different financial services.
‘Recently I was informed that the planned earnings from this issue should be about N20 billion every month and that is an attraction to the authorities for funding all our budget deficits. I should be very quick to say that these authorities have a human face, which is twined around its different decisions,’ the Minister told.
Nigerians suffer from such politics, but can’t do anything. If this change becomes real we will see.
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