Governance & Policy

Nigerians react as telcos increase voice and SMS tariffs with the implementation of 7.5% VAT

February 05, 2020 · 2 min read
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It is no longer news that the reviewed Value Added Tax (VAT) from 5% to 7.5% in the recently signed finance bill took effect from February 1. As it were, telecommunications also fall among taxable services.

Gbolahan Awonuga, Secretary of Association of Licensed Telecommunications Operators of Nigeria (ALTON), confirmed to Techpoint on Saturday that a statement was issued to notify subscribers across all networks of the implementation of VAT increase which will affect tariffs on phone calls, text messages and Internet bundles in the country.

Apparently, these services have always been taxed. According to Awonuga, network providers only have to notify users of the current deductions because of the directive that they should adhere to tariff transparency and quality service delivery in implementing the increase.

Reacting to this, Nigerians have taken to Twitter to express their displeasures.

While some lament on how much will now be spent on calls and texts…

… others think an alternative like WhatsApp call would suffice.

But then, the tax also affects data tariffs.

Meanwhile, there are some who want to educate people on the need for tax and how low Nigeria’s is compared to other African countries.

In the meantime, while more reactions trail this new development, Nigerians should be reminded that the bill has been passed into law and thus, apart from tax-exempt products, the reviewed tax is here to stay.

Oluwanifemi Kolawole

Oluwanifemi Kolawole

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Human enthusiast | Writer | Senior reporter | Podcaster. Find me on Twitter @Nifemeah.

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