Minister of Communication, Bayo Shittu, yesterday
disclosed that the Federal government is
proposing to introduce a bill called the
Communication Service Tax CST bill which seeks to
levy 9% on telecommunication subscribers for
users of various communication services such as voice call, SMS, MMS, Data usage from
telecommunication service providers, internet
service providers and Pay TV Stations.
Speaking at a function organized by the Lagos
Chambers of Commerce and Industry, LCCI
yesterday, Shittu said the introduction of the new
taxes without harmonising existing ones would
put pressure on the country’s tax system thereby
making it unattractive to investors.
According to him, the outcome of deliberations on
the bill would form the basis of his advice to the
President.
“This may also be counter-productive in the
long run for our targets on broadband
penetration. 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.”
According to Shittu, the bill is being
considered as a way to help increase the
revenue generation of the Federal
government.“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”he said The
minister added that the government would
provide an enabling environment for the
ICT and telecommunication sector to thrive
through the enactment of relevant
legislation.
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