FG To Introduce 9% Tax On Calls, SMS, Others

Image

nigerians making calls

Nigerians may have to start paying 9% tax on calls, SMS, PayTV, data and other internet services anytime soon.

This move, according to the Federal Government, is aimed at increasing its revenue so as to fund the budget.

Minister of Communications, Mr Adebayo Shittu, while speaking a stakeholders’ meeting organised by the Lagos Chambers of Commerce and Industry (LCCI) this week, however said this development is being proposed to the government.

He said before this can be implemented, he would need the approval of the President.

“Our ICT Roadmap gives fresh impetus for implementing existing policies and reviewing any that is inimical to the growth of the sector.

“My focus on any tax regime will be to align any process that will stimulate the economy and also ensure that the tax system is efficient by widening the tax net.

“It is also to create an effective framework for tax compliance to protect the poor and vulnerable in the society who nonetheless have to use telecoms services for social inclusion and financial services,” he said at the occasion.

Mr Shittu pointed out that the communication services to be taxed would include voice call, SMS, MMS, Data usage from telecommunication service providers, internet service providers and Pay TV Stations.

The Minister further revealed that when the proposed plan is approved, the government should be making at least N20 billion monthly.

“I have been reliably informed that the projected earnings from this effort is over N20 billion every month, which is an attraction to the government for funding our budget deficits.

“I must be quick to say that this government has a human face twined around its decisions,” said the Minister.

But Mr Taiwo Oyedele, Partner, PriceWaterCoopers disagreed with the Minister on the projected N20 billion monthly from the tax.

He said if the new tax is introduced, consumers would surely reduce their consumption pattern, leading to low revenue for the government.

On her part, President of the LCCI, Mrs Nike Akande, called on the government to create a friendly tax environment so as to allow the industry thrive.

“We know that the government is seeking to diversify its revenue base in the light of dwindling oil revenue. But it is also true that the private sector players will like to see an investment friendly tax environment, especially in the light of the prevailing high cost of doing business in the country. It is important to balance these two positions,” she said.

Also, President of the Association of Telecommunications Companies of Nigeria (ATCON), Mr Teniola Olusola, urged the government to jettison the planned tax increment because he said it will reduce inflow of foreign direct investment into the sector.

He pointed out that players in the sector are already complaining of multiple taxations.

Share
Related Stories
Image
27-February-2024

We Are Not Responsible for Your Woes—CBN Tells Nigerians

By Aduragbemi Omiyale The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, has absolved the bank from the current economic hardship the citizens are going through, saying he and his team are only part of the solution and not the problem. He said this on Tuesday while briefing newsmen on the outcome of the first Monetary Policy Committee (MPC) meeting under his leadership. Mr Cardoso was confirmed as the substantive leader of the central bank last September by the Senate after Mr Folashodun Shonubi, who sat on the seat in an acting capacity after the removal of

Image
28-February-2024

Naira Loses N33 to Trade at N1,615/$1 at Official Market

By Dipo Olowookere It was a bad day for the Naira in the official market, the Nigerian Autonomous Foreign Exchange Market (NAFEM), on Tuesday as its value weakened by N33.00 or 2.09 per cent against the United States Dollar to sell at N1,615.94/$1 compared with the previous day’s N1,582.94/$1. This came on a day the Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, reemphasised that the Nigerian currency was grossly undervalued. While briefing newsmen yesterday on the outcome of the Monetary Policy Committee (MPC) meeting, Mr Cardoso stressed that the current rate was not the true value

Image
29-February-2024

Crude Oil Mixed on Undecided US Interest Rates Move, High Inventories

By Adedapo Adesanya Crude oil futures settled mixed on Wednesday after the US Federal Reserve held firm on its decision to hold off cutting interest rates soon while growing crude stockpiles in the world’s largest producer added further pressure. Brent crude futures settled 3 cents higher, or up 0.04 per cent at $83.68 a barrel while the US West Texas Intermediate futures (WTI) settled 33 cents lower, or down 0.42 per cent at $78.54. The market was unsteady over signs that interest rates in the world’s largest economy would remain elevated. US Federal Reserve Bank of New York President John

Image
28-February-2024

Nigeria’s Stock Market Stands Still to Honour Ogunbanjo’s Legacy

By Aduragbemi Omiyale The stock market in Nigeria stood still for the late former chairman of the Nigerian Exchange (NGX) Group Plc, Mr Abimbola Ogunbanjo, on Tuesday, February 27, 2024. The day was set aside to pay homage to the enduring legacy of the esteemed luminary, who died in a helicopter crash in the United States a few weeks ago along with the group chief executive of Access Holdings, Mr Herbert Wigwe, his wife and son. The NGX Group held an Afternoon of Tributes and Closing Gong Ceremony yesterday for him in collaboration with the Coronation Group. In a poignant

More Stories
Image
27-June-2023

Forex No Deposit Bonus 2023

Diving into forex trading can be daunting, with many novices facing substantial losses due to inexperience and lack of strategy. Yet, hope isn’t lost as several brokers offer innovative solutions to mitigate these risks. Traders Union demystifies one solution that’s gaining traction: the Forex no-deposit bonus. Covering the intricacies of the Forex no-deposit bonus 2023, they offer insight into its potential benefits. They elucidate on how it can provide traders with free start-up funds, transforming the forex trading experience. What is a Forex no-deposit bonus? Traders Union helps illuminate the concept of a Forex no-deposit bonus, a valuable tool for

Image
08-November-2022

Relief as Naira Value Grows at Black Market, P2P

By Adedapo Adesanya The value of the Naira to the American Dollar grew on Monday at the parallel market and the Peer-to-Peer (P2P) segment of the foreign exchange (forex) market. The Naira had taken heavy beatings in recent weeks as the Central Bank of Nigeria (CBN) sent people into panic mode by announcing plans to redesign the banknotes next month. This put pressure on the local currency as currency hoarders were making efforts to mop up Dollars to remain safe. In the black market yesterday, the Nigerian currency appreciated against the greenback by N15 to trade at N870/$1 compared with

Image
04-April-2022

Bridging the Skills Gap in Institutions of Higher Learning in Nigeria

By Otori Emmanuel What is Skill Gap? The concept of skills gap characterizes the divergence that currently exists in what potential job prospects are required of and what is being offered. Skill Gap Analysis is a method of determining which skills and knowledge gaps exist between the workforce system in Nigeria and its students of higher learning. On a general note, the disparity in skills of a job candidate and what employers demand takes its root from primary through the secondary and higher education system. It is obvious that students are not armed with the skills for real-life experiences but

Image
28-September-2017

NB Plc Donates Medical Facilities, 100kva Generator to Immigration

By Modupe Gbadeyanka A newly constructed, fully equipped clinic and 100KVA generator has been commissioned and donated to the Nigerian Immigration Service (NIS) in Ikoyi, Lagos State by the management of Nigerian Breweries Plc. Mr Kufre Ekanem, Nigerian Breweries’ Corporate Affairs Adviser, who represented the company’s Managing Director, Mr Johan Doyer, explained that the gesture was in line with the brewer’s philosophy of winning with Nigeria and to confirm it identifies with the vision and mission of key stakeholders in the Nigerian project. Mr Ekanem added that the donation of the facilities was a gesture that would contribute to the

Image
23-January-2020

Quickteller Begins ‘Everything is Possible’ Campaign

Quickteller, a leading consumer payment platform of Pan-African integrated digital payments company, Interswitch, known for providing seamless payment solutions, has launched a new campaign themed Everything is Possible. The campaign demonstrates the ubiquitous nature of the Quickteller platform. The commercials, which have just been released, are in two versions The Big Idea and Possibility. Both versions are in furtherance of the previous Quickteller campaign, One less thing to worry about, and reiterate the ease and universality of the Quickteller platform. The commercials deploy the use of humour and creativity to subtly drive in the point that on Quickteller, a user

Image
02-March-2018

Investors Snub 91-Day T-Bills as CBN Rakes N277b from 259-Day Paper

By Dipo Olowookere The thirst of investors for longer tenor treasury bills at the detriment of the shorter tenor continued on Thursday at the Open Market Operations (OMO). Business Post reports that the N100 billion worth of the 91-day bills offered for sale by the Central Bank of Nigeria (CBN) received no single bid yesterday, whereas, the N300 billion worth of the 259-day instrument had fair subscriptions from traders. At the close of Thursday’s exercise, the apex bank raised the sum of N276.8 billion from the sale of the 259-day paper. This consequently helped in calming what would have been

Image
14-September-2017

Sage Highlights Benefits of Payroll Automation

By Modupe Gbadeyanka It is no doubt that the Federal Government has taken the issue of taxation very serious especially due to shortfall in revenues that usually come from the sale of crude oil. On July 1, 2017, the government commenced a tax amnesty period for Nigerians and businesses to ensure they regularise their tax books before the end of March 2018. According to Sage, many business managers and entrepreneurs think of running the payroll as a simple matter—what could be hard about paying your employees the right amount of money on payday and giving them a payslip? But the

Image
19-December-2022

Berger Paints Appoints Aruoture as COO for Increased Efficiency

By Aduragbemi Omiyale In order to position its business for increased efficiency, Berger Paints has appointed Mr Celestine Aruoture as its Chief Operating Officer (COO). The appointee, according to a statement from the paint maker, is a registered engineer with the Council for the Registration of Engineering in Nigeria (COREN), a member of the Nigerian Society of Engineers (NSE), the American Society of Civil Engineers, and the International Facility Management Association. He graduated from Ambrose Alli University, Ekpoma, Edo State, with a Bachelor’s degree in Civil Engineering. He proceeded to the University of Lagos (UNILAG) for Masters of Facilities Management

Ad
Ad
Recent Stories
Image
29-February-2024

MasterCard, MTN Partner to Boost Digital Commerce, Payments

By Aduragbemi Omiyale A partnership aimed at driving acceleration of the mobile money ecosystem in Africa across 13 markets has been entered into between Mastercard and MTN Group Fintech. This is coming shortly after the payments giant completed the purchase of a minority stake in the telecommunications company. The deal will see Mastercard giving a prepaid virtual card tailored for MTN’s MoMo customers, granting them access to over 100 million acceptance points worldwide. Additionally, it will empower MoMo merchants to seamlessly accept card payments, enhancing the platform’s instant cross-border money remittance services and capabilities. Further, Mastercard will use its cutting-edge

Image
29-February-2024

Adesina to Receive Prestigious Obafemi Awolowo Prize for Leadership

By Ichie Enyi Ejike Umunnabuike Jr Come March 6, 2024, the Lagos Continental Hotel will host an unforgettable occasion when the President of the African Development Bank (AfDB), Mr Akinwumi Ayodeji Adesina, will be formally honoured and presented with the distinguished Obafemi Awolowo Prize for Leadership 2023. The Obafemi Awolowo Prize for Leadership was first announced in December 2012, with the official award ceremony held on March 6, 2013. Before Mr Adesina was announced as its fourth recipient, three other distinguished personalities had been conferred with the prestigious award – Noble Laureate, Prof. Wole Soyinka; former South African President, Thabo

Image
29-February-2024

Exploring Diverse and Evolving Sounds of Africa

Africa’s music scene is a sonic melting pot, where rhythms collide and cultures connect. It’s a universal language, a force that breaks boundaries and fuels the soul. This sonic tapestry isn’t just diverse – it’s explosive. Afrobeats and Amapiano own the spotlight right now. Those irresistible Afrobeats hooks? They’ve got the whole world dancing. And Amapiano’s hypnotic blend of South African house and street sounds? It’s straight-up addictive. Mainstream African artists are pushing the boundaries like no one else, taking Amapiano and running with it. They’re injecting their fire, creating a whole new flavour. This is proof that African music

Image
29-February-2024

Nigeria Needs Policies that Prioritize Economic Recovery—Peter Obi

By Adedapo Adesanya The presidential candidate of the Labour Party in the 2023 general elections, Mr Peter Obi, has raised concerns over the recent decision of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to increase the Monetary Policy Rate (MPR) to 22.5 per cent and the Cash Reserve Ratio (CRR) to 45 per cent. Mr Obi warned that this move is likely to worsen the ongoing economic challenges faced by many Nigerian households, and emphasized the need for policies that prioritize economic recovery. In a statement issued via X (formerly Twitter), the businessman and former

Image
29-February-2024

Silence Laboratories Raises $4.1m for Privacy-Preserving Computing

By Adedapo Adesanya Silence Laboratories has announced securing $4.1 million in funding to enable privacy-preserving collaborative computing led by Pi Ventures and Anurag Arjun, along with several prominent angel investors. In a statement shared with Business Post, the company said with the market for privacy-enhancing technologies (PETs) growing globally at a compound annual growth rate of 26.6 per cent, there is growing demand. In recognition of this, Silence Laboratories is offering to provide mathematical guarantees for techno-legal expectations as part of a mission to create infrastructure to enable complex data collaborations between enterprises and entities, without any sensitive information being

Image
29-February-2024

MainOne Stretches Submarine Cable to Akwa Ibom

By Modupe Gbadeyanka A submarine cable spanning 45,000km in length known as 2Africa has been landed in Akwa Ibom State by MainOne, an Equinix company. It is one of the world’s largest subsea cable projects and will interconnect Europe, Asia, and Africa, with a design capacity of up to 180Tbps. The cable is the first and only submarine cable system in Nigeria outside of Lagos, and it marks a significant milestone in enhancing broadband connectivity and driving economic development in the South-South, South-East and North-Central regions of Nigeria. The significance of 2Africa lies in its capacity to address critical internet

Image
29-February-2024

Russia, Mali Review Military Partnership

By Kestér Kenn Klomegâh  Russian Foreign Minister Sergey Lavrov has offered an increased military partnership during the latest bilateral talks held on February 28, 2024, with his Malian counterpart Abdoulaye Diop in Moscow. The significance of Russian support is directed at fighting terrorism and enhancing the combat effectiveness of the Malian army and law enforcement agencies, including the training of soldiers and police officers The interim military government has maintained a well-developed multifaceted nature of bilateral relations with Russia since the military ascended into political power. Russian leader Vladimir Putin and Mali’s Interim President Assimi Goita on the sidelines of

Image
29-February-2024

Anthropics Unveils Zyler Virtual Try-On for Menswear

By Modupe Gbadeyanka One of the global leaders in virtual fashion try-on technology, Anthropics, has moved to transform the future of online shopping with the introduction of the Zyler Virtual Try-On for menswear. The new initiative will improve the way consumers shop for clothes, providing a realistic virtual try-on experience. With it, customers can upload a headshot, enter some measurements, and then see themselves on the screen wearing the outfit. Powered by the latest research in Artificial Intelligence, Zyler creates a lifelike virtual representation of the user, allowing them to see how different garments fit and look on their unique

Image
29-February-2024

Aradel Holdings, CSCS, FrieslandCampina Sink NASD Exchange by 0.79%

By Adedapo Adesanya Profit taking in the trio of Aradel Holdings Plc, Central Securities Clearing System (CSCS) Plc, and FrieslandCampina Wamco Nigeria Plc made the NASD Over-the-Counter (OTC) Securities Exchange close the midweek session further in the red territory on February 28 by 0.79 per cent. Aradel Holdings Plc lost N20.50 to close at N2,500.00 per share compared with the previous day’s N2,520.50 per share, CSCS Plc depreciated by N1.35 to end the day at N18.65 per unit versus the N20.00 per unit it was traded on Tuesday, and FrieslandCampina Wamco Plc declined by 63 Kobo to N70.25 per share

Image
29-February-2024

Naira Gains as Binance, Others Halt USDT, USDC Exchanges Amid Crackdown

By Adedapo Adesanya The Naira appreciated against the US Dollar in the foreign exchange (FX) market on Wednesday, February 28 as crypto exchanges like Binance, will no longer allow users to buy the US Dollar Tether (USDT) and US Dollar Coin (USDC) stablecoins with Naira after renewed scrutiny from the Nigerian government. The regulatory crackdown continued in the Nigerian FX market as the country moved to aggressively suppress the activities of spectators and traders across digital platforms. On Wednesday, the Nigerian government tricked two executives of Binance – an American and a British Pakistani into the country for a meeting