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BREAKING: Senate To Impose Tax On GSM, Cable TV
Subscribers
A bill for an Act to introduce tax on communication and cable
television services scaled first reading at the Senate on
Wednesday.
The introduction of the tax, it was learnt, was to replace the
2.2 per cent increase in the Value Added Tax being planned by
the Federal Government.
The Bill for an Act to establish the Communication Service Tax
was sponsored by a former Senate Leader, Ali Ndume.
Briefing journalists shortly after the first reading of the bill was
taken by the Senate, Ndume said the imposition of tax on
communication service was a better way of distributing wealth
in such a way that would not affect the ordinary people.
He said increasing VAT would have very devastating effects
on the economy as it would raise prices of goods and
services.
The bill provides the charging of nine per cent on calls and
data usage.
The bill reads in part, “There shall be imposed, charged
payable and collected a monthly Communication Service Tax
to be levied on charges payable by a user of an electronic
communication service other than private electronic
communication services.
“The tax shall be levied on electronic communication services
supplied by service providers.
“For the purpose of this clause, the supply of any form of
recharges shall be considered as a charge for usage of
electronic communication service.
“The tax shall be levied on such electronic communication
services like voice calls, SMS, MMS, data usage – both from
telecommunication services providers and internet service – as
well as pay per view TV stations.
“The tax shall be paid together with the electronic
communication service charge payable to the service provider
by the consumer of the service.”
The bill stipulates that the Federal Inland Revenue Service
would pay the tax collected together with any interest and
penalty into the Federation Account.
According to the bill, all service providers shall file a tax return
to account for the tax.

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