The Nigerian Government wants to increase taxes on your Phone and Pay TV bills

by | May 18, 2016

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.

Ifeanyi Ndiomewese
Ifeanyi Ndiomewese

Ifeanyi is a desk reporter-turned administrator. Outside of work, I love to read and travel.

On January 22, 2022, be part of the largest gathering of innovators, startup founders, thinkers, programmers, policymakers, and investors in West Africa. Register free.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Recent News

Uber’s bet on ‘Okada’

Uber’s bet on ‘Okada’

Today on #TechpointDigest, @nifemeah discusses Uber’s launching its motorbike hailing service, UberMoto, in Ibadan.

Subscribe to Techpoint Digest!

A daily 5-minute roundup of happenings in African and global tech, sent directly to your email inbox, between 5 a.m. and 7 a.m (WAT) every week day!

Please check your email to confirm your subscription.

Subscribe to Crypto Explorer

A monthly series featuring in-depth analysis on the cryptocurrency sector in Africa

Please check your email to confirm your subscription.

Subscribe to The Experts

A bi-weekly where tech career specialists take us on their journey from newbie to expert, and how they became successful in the industry.

Please check your email to confirm your subscription.

Subscribe to Founder's Table

A monthly series, where we catch up with founders in the startup ecosystem, learn about their failures, successes and a few tricks of the trade

Please check your email to confirm your subscription.

Copy link
Powered by Social Snap