Nigeria telecommunication operators (MTN Nigeria, Airtel, Globacom, and 9mobile), have faulted the federal government’s new planned tax on phone calls. ayokinews.com reports
Recall that the government placed a telecom tax on phone calls after President Muhammadu Buhari signed the National Health Insurance Authority Bill 2021 last week.
According to the new law, this would be one of the funding sources for free healthcare for Nigeria’s Vulnerable Group.
The legislation stipulates that “telecommunications tax, not less than one kobo per second of GSM calls” will be one of the sources of funds for the Vulnerable Group Fund.
The telcos, under the auspices of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), argued that the decision contradicted the government’s position, as they (the operators) recently announced plans to raise tariffs due to the high cost of diesel powering their base stations.
According to ALTON Chairman Engr. Gbenga Adebayo, telecom users would be the one to face the brunt of the new levy since they will now receive less value for their money. He goes on to say that if the government mandates it, operators would have no choice but to begin deducting the tax from users’ recharges.
Read: NCC rejects MTN, Airtel, GLO, others’ request to increase call, SMS charges
“For us as at ALTON, it is bad fate on the part of government and I think it is badly intended. This is because when we came out that the government should look at our cost of operations and give us a room to review tariffs, everybody treated us like outcast,” Gbenga said.
“The same government is now coming in a matter of days to say they are introducing new taxes. So, if we cannot review based on the impact it will have on subscribers, why are they bringing in another tax, still on subscribers. Government cannot act in one way and say another thing.”
He stated that the government could impose tax on other services other than a vital sector like telecommunications.
“The reason for it is understandable, but we think it can be sourced from other sources, not telecoms subscribers, whom the government itself has said are suffering because of the high cost of living lately. We will not complain as operators because we will definitely remit, it is the subscribers that will bear the brunt. I say again that for us to have a sustainable industry, we must price right. Government cannot escape from this responsibility for a long time,” he said
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