The Nigerian Senate Bill proposed to impose tax on users of GSM and Cable TV subscribers has passed the first senate reading.
The Bill for an Act to establish the Communication Service Tax was sponsored by a former Senate Leader, Ali Ndume who argued that the proposed tax will be replacing the 2.2 percent increase in the Value Added Tax planned by the Federal Government.He noted further that the Communication Service tax is better to prevent increase in the price of goods and services which the FG’s VAT increment will lead to.
The bill reads that, “There shall be imposed, charged payable and collected a monthly Communication Service Tax to be levied on charges payable by a user of an electronic communication service other than private electronic communication services.
The tax shall be levied on electronic communication services supplied by service providers. For the purpose of this clause, the supply of any form of recharges shall be considered as a charge for usage of electronic communication service.Read also: Breaking: An American Host Company Has Suspended The Official Website Of The Nigerian Senate
The tax shall be levied on such electronic communication services like voice calls, SMS, MMS, data usage – both from telecommunication services providers and internet service – as well as pay per view TV stations. The tax shall be paid together with the electronic communication service charge payable to the service provider by the consumer of the service.”