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Senate imposes Tax on GSM, Calls and Communication Service



Senate imposes Tax on GSM and service

The Nigerian Senate reads Communication Service Tax, and has pass the first reading in the floor of Nigerian senate on Thursday.

The Bill for an Act to establish to the tax for Communication Service was read in the Senate today.

Former Senate Majority Leader, Ali Ndume, sponsored the bill but was called to replaced 2.2 per cent increase in the VAT as planned by the Federal Government.

Ndume, personally opposed to the increment in VAT, citing that such will hike the prices of goods and services and will have an unbearable event on our unstable economy.

Meanwhile, He, argued that since nine per cent is charged on calls and dat, it should be left at that as not to affect an ordinary people.

Senate Bill for an Act to established Communication Service Tax reads:

The Bill reads: “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.

“The tax shall be levied on such electronic communication services like voice calls, SMS, MMS, data usage – both from telecommunication service 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.”

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