Stop communication tax debate now!
Sir: The situation in Nigeria does not call for additional financial pressure on the people. Perhaps no time has been as tough as this for Nigerians.
That is why it comes as a shock that the National Assembly would like to compound the situation of citizens by proposing another tax law through the Communication Service Tax (CST) Bill, now with the two chambers of the National Assembly.
According to the proponents of the Bill, Nigerian telecommunication consumers should be levied 9% in addition to the cost of certain services as service charge and this amount will be remitted every month to the government by the service providers. This additional tax is not a replacement for any of the already applicable taxes on services such as Value Added Tax, instead it is to be paid by the subscriber in addition to VAT charged on services. The CST as it is popularly referred to is targeted at voice calls, SMS, data services, MMS and Pay TV viewing.
The National Assembly needs to be concerned about the negative consequences of another tax law, which is what the CST Bill is all about. Apart from the additional cost that the subscriber will have to pay, the ultimate drop in revenue by the industry operators will be a disincentive for investment in the communication and broadcasting sectors of the economy at a time when Nigeria should be encouraging foreign and local investors to ginger the economy. Over the years, the operators had complained about multiple taxes and fees set by various arms of government, as well as the high costs of doing business.
Despite the phenomenal growth in the telecoms sector with 83 million people in Nigeria having access to mobile telecommunication services, half of the population who are largely low-income earners are yet unconnected to the services. Further taxation through the CST Bill will deal a bigger blow on all the efforts to connect the unconnected and boost their socio-economic status.
The role of government is to improve the lot of its citizens, not to compound it. That is why the National Assembly must resist this bill and stop the debate on the CST Bill now!
Joseph Lowase,
Benin City.
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11 Comments
How much income tax for you pay Joseph. You think the developed economies look good because people don’t pay tax. Most Nigerians are just free loading
What do you mean? The issue here is multiple taxes! You don’t collect VAT and come up with another tactics to collect more with another name!
Nigerians don’t pay tax and expect the Government to provide everything for them. The only things sure in life should be death and taxes. This is why States are broke. The ignorant governors don’t even know that that is a veritable source of income. Ordinary tenement rates they cannot collect. If we all pay a little into Government coffers and the money used judiciously our lives will improve.
Look at what churches are able to achieve with tithes and offerings.
The biggest problem of African Democracy is citizens denial or simply put alienation of the citizens, they are quick at copying wrongly or rightly some aspects of western democracy, but not the one that provides for the citizens. Taxation in Europe and America is a two way system whereby when a child is born , the child is assigned a social security number and the child is paid child allowances till when he or she turn 18. As a tax payer , the tax is in fact pension saving and some of it is return if you have been over tax based on clearly defined standards. Consumers pay VAT and nothing more. The unemployed is entitled to unemployment benefits. Parents have paid parental leave. All senior citizens are by right entitled to state pension- that will include my father and mother in the village. Can we copy this side of western democracy!
Your analysis is well spoken and taken, if I may ask our friend the govt spokesman Ogbologbo, the taxes so far collected and all accrued allowances which could be used to enhance the well being of the citizens both social and otherwise, were they not what they stole without making anything
available to us. So you encourage them to continue undoing us? Well!!
Exactly my point. The struggle should be on getting government to live up to its responsibilities and be accountable. If we don’t insist we will never have a better society. Pay your taxes and the insist your taxes do not end up in the pockets of politicians. We have to change our thinking.
Happy you know it is a two way system. Pay first and then insist that Government lives up to its responsibilities
Mr Ogbologbo, you come across as purely ignorant. A wise person would not quote things from stories they hear, but like Ernest did below, what they CERTAINLY know. Western or developed countries are not multi-taxing their citizens and for the taxes citizens and residents pay, the return on investment is rather exceptionally good. Which developed countries are you referring to then? The one in your imagination? Nigerians are right to avoid taxes because the ones they have paid doesnt yield anything but interests in the savings account of their rulers – mind you, I dont call them leaders. But again, as your ignorance starkly shows, you countered yourself by then saying “if we all pay A LITTLE into govt…”; that is the crux of this arguement: our govt wants more not little and yet do not use any of it “judiciously” as you wish it is/could be. This new tax is simply an exploitation and tyranny when there is no evidence that it is needed, what it is needed for and HOW it will be implemented “judiciously”. It’s your type whose lackadiasical attitude fuels mis-management and corruption in Nigeria. In the said developed country you talked about, a govt official will listen to Joseph’s article and respond with clear stated goal on why the money is needed and where it will go; many politicians will go back to their constituency and hold public meeting stating why they support it or oppose it and listen to their contituents on what they think; thats developed countries for you. Tithes and offerings are voluntary although in the same Nigeria, congregants are emotionally blackmailed with all manner of scaremongering and exploitation to part with their money… Your pastors are laughing to the banks and in private jets; thats what it achieves. Shameless!
Mr know it all. How much tax do you and your family members pay. The truth has few friends.
MR, CAN YOU OUTLINE ONE OR TWO SOCIAL SERVICES NIGERIANS GET FROM THEIR GOVERNMENT AS IS THE CASE IN YOUR COUNTRIES OF REFERENCE? PEOPLE PAY ELECTRICITY BILLS IN NIGERIA ALL YEAR ROUND WITHOUT LIGHT FOR EVEN A DAY. YOU CAN SUPPORT THE GOVERNMENT WITHOUT EXPOSING YOUR IGNORANCE OKAY!
I am not supporting Government. No one likes what is happening in Nigeria. Calling me ignorant does not solve the problems we have. What is your solution. Mine is pay your taxes and hold your leaders accountable. If we do, that way anyone that provides service will know that we are all watching and will sit up. OK. And please don’t call people who have a different pont of view from you names no matter how angry you are. Please let’s be civil and have RESPECT for each other.
We will review and take appropriate action.