Wednesday, Jan 29th 2020 12:03 PM

Market Digest Nigeria


Nigerian operators oppose plan for 9% tax on telecommunications

The Association of Telecommunications Companies of Nigeria (ATCON) has asked the government to drop the bill seeking to impose communication services tax (CST) on charges payable by consumers at the rate of 9 percent.

ATCON said this would be another burden when on a subscriber base of 173 million. VAT at 5 percent already applies to voice, SMS and data services.

ATCON recommended that the Nigerian tax base should be widened to more payers. Only 13 million out of 70 million were contributing to the tax revenue of the government, it said. Since 2016, Nigeria has under gone a recession and suffered GDP growth coupled with recurrent expenditure that now exceeds oil revenue.

The operators said the CST Bill is a direct copy of Ghanaian tax and it should not be pushed through the National Assembly without due consultation with all stakeholders.

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