The Minister of Communication, Adebayo Shittu, has said that the FG would consult extensively with the private sector on the controversy surrounding the Communication Service tax bill.
The Communication Service Tax Bill, which is before the National Assembly, seeks to levy 9% on subscribers for the use of the various communication services like voice call, SMS, MMS, Data usage from telecos, internet service providers and Pay TV Stations.
Shittu said the outcome of deliberations on the bill would form the basis of his advice to the President. He noted that introduction of new taxes without harmonising existing ones would put pressure on the country’s tax system thereby making it unattractive to investors.
According to him: ”This may also be counter-productive in the long run for our targets on broadband penetration. 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.
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."
The Communication Service Tax Bill, which is before the National Assembly, seeks to levy 9% on subscribers for the use of the various communication services like voice call, SMS, MMS, Data usage from telecos, internet service providers and Pay TV Stations.
Shittu said the outcome of deliberations on the bill would form the basis of his advice to the President. He noted that introduction of new taxes without harmonising existing ones would put pressure on the country’s tax system thereby making it unattractive to investors.
According to him: ”This may also be counter-productive in the long run for our targets on broadband penetration. 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.
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."
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