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…
Normally an SMS is N4 but today i sent a text and i observed it was N4.10K. Imagine 10kobo from 100Million people.
7.5% VAT is in everything now. Thank you Buhari for the yahoo yahoo government.
Buhari I wish u parents used Condoms that night pic.twitter.com/WmqWOV6xEY
— LEGIT (@Jenkky_2fit) February 5, 2020
7.5% VAT won't affect the poor masses yen yen yen.
7.5% VAT is only for luxuries yen yen yen.
Now MTN is adding 7.5% VAT to calls/texts or sending texts & phone call is for the rich alone?.
The annoying part is we didn't even have good roads to show for all the before before tax.— Uncle AJ (@UNCLE_AJALA) February 5, 2020
Pls see the screenshot that indicates the 7.5% VAT charge is now being applied on mobile phonecalls
I guess only the rich make phone calls in Nigeria?
Where are the Buharinomics experts & Ajurian economists that claimed the increase won't affect the poor?
Purveyors of poverty! pic.twitter.com/ihoGghTBID
— The OBIdient Seeker (@The_Seeker76) February 5, 2020
... others think an alternative like WhatsApp call would suffice.
Everyone complaining of 7.5% VAT... This is me knowing there something called WhatsApp Call! pic.twitter.com/TJbLl49Uc8
— nehe Ororo (@theotherayo) February 5, 2020
But then, the tax also affects data tariffs.
I hope u know the 7. 5% VAT affects ur Data subscription as well😩😩😩🤷♀️ https://t.co/BLv9Niaoyv
— LEGIT (@Jenkky_2fit) February 5, 2020
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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.
Before una increase the volume of frustration on top 7.5% VAT, make una compare note. pic.twitter.com/4nKl6jNLLJ
— Abeg No Vex, I Have (@AbegNoVex) February 5, 2020
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.
