Telecom Companies Oppose 9% Communication Service Tax

• Telecom Companies Oppose 9% Communication Service Tax

Telecommunication companies have opposed and condemned the proposed 9 percent Communication Service Tax by the National Assembly.

Telecom operators across the country said the proposed service tax would further saddle Nigerians with more burden.

Speaking under the aegis of the Association of Telecommunications Companies of Nigeria and the Association Licensed Telecommunications Operators of Nigeria (ATCON), said the charges would hurt the growth of the sector and subsequently weigh on job creation.

Senator Ali Ndume had sponsored a bill proposing a 9 percent communication service tax and suggested the 2.2 percent increase in Value Added Tax proposed by the Federal Executive Council be rejected.

Mr. Olusola Teniola, President, ATCON, said communication service tax was suggested in 2016 but because the 8th National Assembly understood its impact on the sector, they agreed with ATCON to suspend the idea.

He, however, advised that the tax base should be broadened to compel more businesses to pay taxes.