The National Assembly is pushing for a new bill to be enacted into law. “If it’s not their primary job, then what is” you’d ask. Well the supposed bill, if pushed through would, see subscribers pay additional tax on the communication services they utilize.
The Bill, titled ‘Communication Service Tax Bill (“CST” or the “Bill”) 2015’, seeks to impose, charge and collect Communication Service Tax (CST) and will be levied on service fees payable by users of electronic communication services at 9% and will be borne by the customers.
Categories of communication services as listed on the section 2 of the bill are liable to the following services; voice calls, SMS, Data and Pay TV. In simple terms, what that means is; the above mentioned communication services will attract 9% of the entire service charge as CST.
The Federal Inland Revenue Service (FIRS) will be responsible for the collection of the tax, its payment together with any interest and penalty into the Federation Account, while the Federal Government will be responsible for the administration and management of the funds.
Should the supposed Bill be enacted into law, it will mandate service providers to file monthly tax returns with the FIRS with strict financial penalties for non-compliance. Furthermore, the taxes are to be paid not later than the last working day of the month to which the payment relates.
What do you think about the Bill? Do you think it’s a step in the right direction? Kindly let us know your thoughts in the comment section.