Would you be willing to give the federal government N90 of your N1,000 airtime? An incoming tax policy may force you to!
The federal government is planning a nine percent tax on SMS, MMS, phone calls, and pay TV bills in Africa’s largest telecommunications market Nigeria.
Adebayo Shittu, minister of communications, had initially said the plan would fetch as much as N20 billion for the federal government on a monthly basis, translating to N240 billion in a year.
“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,” Shittu had said.
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He however added that the “this government has a human face twined around its decisions,” stating that it would consider the masses before implementing such.
Just while we were brooding over this, the Communication Service Tax (CST Bill 2015) had passed first reading at the house of representatives, and may soon scale its second hurdle into becoming a law.
Although the law has been criticised in some quarters, the government is doing all it can to get out of a recession, which may include Nigerians’ N9 on every N100 recharge.
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“Our appetite as a government to increase revenue makes this bill worthy of our consideration,” Shittu also stated.
The minister acknowledged that Nigeria had achieved only 10 percent broadband penetration, as against the 30 percent mark set by the International Telecommunications Union (ITU) for 2018.
“If we are to catch up with lost ground and meet up with the expectations of the global community in the area of affordable broadband service, we have to incentivise the populace by helping to aid access to low cost data service subscription,” he 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.
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Nike Akande, president of Lagos Chamber of Commerce and Industry, weighed in on the policy, saying government must balance revenue generation against friendly tax policy.
The National Association of Telecommunications Subscribers (NATCOMS), Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) have also expressed opposition.
But N20 billion per month is a lot for the federal government at such challenging time as this. Do you stand with the government or with opponents of the policy?
Let us hear you:
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13 comments
The fund, if gets to government purse, will be stolen just like the other funds.
Buhari is yet to sell off some of the aircrafts in the presidential fleet yet he wants to disturb the poor masses. He increased the budget for feeding at the villa, increased budget for maintenance of the state house, budget for wildlife and budget for state house clinic. Why ask the masses to tighten their belts while he lives in opulence? Are we a cursed nation? Who did we offend to have these sort of heartless rulers in Nigeria?
Your comment..where is the #20b going to, what is the benefits of people in this government, only for the poor masses to be suffering, Allah say the richer get richest while the poorer get poorest, we are very disappointed in your government Mr president, fear Allah.
I suggests our past leaders, generals & all who have been in d corridor of power should make a little refund of d much dey have stole 2 get us out of recession. Nigeria is not broke, if Nigeria is broke d senate & house of reps would reduce their allocations…. Dey r living Big…..why N90.
the Nigerian govt is as coupable as the common criminal who goes on robbing and maiming other nigerians can you imagine N9 out of every N100 and not N1 out of N100 what is the rush ALL about or they want to give to us fat figures coz thats what this government is known for ‘FAT FIGURES’….mtchewwww
God forbid bad thing. Nigerians will stop buying recharge card then. Is it the government that buys recharge card for us? What have they done to help the masses? Nothing is free except air, because they can’t control it. They should be ashamed of themselves. The minister is a shameless man, he needs deliverance. We nigerians will place a curse on them if they try such a thing. N9? The fools dint say N1,that shows how myopic they are. May God save nigeria from this demons.
I really don’t understand Nigeria government. If you must generate revenue to fund your budget, must you milk the already malnourished citizens dry?
It is either Nigerian’s leaders are wicked or shameless. Maybe they are just clueless after all. You be the judge.
They will look into it. The minister said. It’s not posible is the answer. Help us in nigeria oh lord of creation from self centred leaders. I think all policies should be center on the poor masses.
Your comment..these people are set of deceivers. Who did Nigerian masses offend.
I believe our leaders don’t think about the people. Yes, the government is broke. We are even broker! All of 90 naira as tax for a thousand naira recharge? It’s too much.
We need a new opposition party.it is obvious the PDP can’t challenge this APC because of the former’s problems. How can APC continue to impoverish the masses in order to raise cash.you raise revenue only when you increase the purchasing power power of the people.demonic govt in power
This is double taxation; vat has been charged on every recharge card the people buy. What stops PMB from cutting down the humongous salaries and allowances of our thieving legislooters and their numerous aids if he’s serious about savings? Salaries/allowances for all these people constitute over 70% of the national budget hence nothing is left to fund development. Let him leave the already impoverished masses alone.
The problem we have in this nation is corruption!!what’s the guarantee that the money would be properly used or invested. It may just be another means of generating money for some set of selfish individuals. Oh yes I love my nation and willing to make sacrifices for the growth and development of this nation but what to do when leaders can’t be trusted. To generate income, the first step I would recommend is reduction of allowances for leaders( let’s start from the lawmakers). They could pass a bill for deduction of airtime but can’t pass a bill for reduction of their salaries and allowances.