Telcos operators fault planned Communication Tax

Telecommunication operators under the auspices of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), have faulted the proposed nine percent Communication Tax.

They explained that the proposed tax without the exclusion of the applicability of the Value Added Tax (VAT) will amount to doubles taxation as the proposed bill was an additional tax on communication services rendered to the same end users who already pay a five percent tax as VAT.

The Minister of Communications, Adebayo Shittu, had earlier said in Osogbo, Osun State that the proposed tax would help to galvanize telecommunication infrastructure deficiency, noting that apart from that, it would help government generate revenue for running the country.

Also, Shittu disclosed at the Communication Services Tax Stakeholders meeting organized by the Lagos Chambers of Commerce and Industry (LCCI) in Lagos, that the proposed bill would generate about N20 billion monthly for the Federal Government.

But ALTON cautioned the Federal Government that the proposed tax would hit hard on the sector, adding, “we must correct this general notion that service providers can absolve any tax without considering the capital and operational cost to the service providers”