Nigerians to pay more on phone calls as FG slams N90bn new tax on Telcos

The Association of Licensed Telecoms Operators of Nigeria (ALTON) has said unequivocally that Nigerian telephone users will bear the brunt of a new tax imposed on its members by the Federal Government.

Alton alerted the nation that the government by a new tax regime is adding one Kobo on a second of call made. It described the move as insensitive on the part of the Federal Government, considering the harsh operating environment of telecom companies.

The Federal Government has provided for a one kobo per second tax on phone calls to fund free healthcare for the Vulnerable Group in Nigeria.

RELIABLESOURCENG.COM reports that this is contained in the National Health Insurance Authority Bill (now an Act) 2021, signed by the President Muhammadu Buhari, recently. This, according to ALTON, translates to a nine per cent tax on GSM calls when implemented.

ALTON added that the new tax would reduce the value subscribers get from telecom services, as they would need to pay more to enjoy what they used to.

“For us as at ALTON, it is bad fate on the part of the government, and it is badly intended. This is because when we came out that the government should look at our cost of operations and give us room to review tariffs, everybody treated us like an outcast.

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“The same government is now coming in a matter of days to say they are introducing new taxes. So, when they were saying to us that we cannot increase tariff because it is insensitive to the plight of the people and now, they brought another tax through the back door, we think it is bad fate and badly intended. 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,” the group protested.

ALTON advised the government to consider taxing another industry rather than telecoms. According to it, subscribers will have to pay extra for this new cost.

It said: “This can be introduced to another sector of the economy.

“The reason for it is understandable, but we think it can be sourced from another source, not telecoms subscribers, whom government itself has said are suffering because of 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.

“It will affect the subscribers because they get less value for what they pay for. It means now that when you buy N100 recharge card, the percentage will be deducted from it and paid to the government. So, it is actually short-changing the people. What will happen is that operators will be mandated to collect this tax on their behalf and remit it to the government.”