The Federal Government is reconsidering imposing excise duty on telecom services months after it was suspended. This would compel operators to adjust the rates of calls and data upward, which means Nigerians will have to spend more on airtime and data purchase.
There are reports that the suspended excise duty on telecom services is featured in the the 2022 Finance Bill, which is currently before the National Assembly.
[wonderplugin_video iframe=”https://youtu.be/m4QsXrmtKkk” lightbox=0 lightboxsize=1 lightboxwidth=960 lightboxheight=540 autoopen=0 autoopendelay=0 autoclose=0 lightboxtitle=”” lightboxgroup=”” lightboxshownavigation=0 showimage=”” lightboxoptions=”” videowidth=600 videoheight=400 keepaspectratio=1 autoplay=0 loop=0 videocss=”position:relative;display:block;background-color:#000;overflow:hidden;max-width:100%;margin:0 auto;” playbutton=”https://www.tvcnews.tv/wp-content/plugins/wonderplugin-video-embed/engine/playvideo-64-64-0.png”]
The Federal Government says the need to increase revenue generation. Tax Administration is reasoning for the proposed excise duty in July this year, the Federal Government has announced plans to implement a 5% excise duty on telecom services, but had to suspend the plan, following criticisms from Nigerians.
Chairman, Ikeja district society of ICANN and a member of chartered institute of taxation of Nigeria, Olusesan Okunade says the proposition by the Federal government is good to them, but for an average citizen, some of us have clamoured that the multiplicity of taxes that the government is given to an average Nigerian goes unbearable.
It becomes unbearable for them and it kills the businesses that we have. What we need to consider is how do we increase the tax base rather than creating more taxes? Because this taxes we’re talking about is still going to be borne by the same set of people that have been paying the statutory taxes that you have actually put there.
According to him, looking at other climes where taxes have been used as a major revenue base, it is increasing the tax business.
He stated that people come to discuss figures but is government fulfilling its social responsibility by being accountable for the ones that they have collected.
Given multiple taxations, this one will come, you will charge it again on an individual that has been paying his company income tax, paying stamp duty, paying education tax, paying all form of taxes that is expected of them and also doing other things that is expected of the government, such as providing of electricity and others.
Mr Okunade said this is not the time to increase the hardship of average Nigerian.
He added that there are several persons who are not paying taxes such as the politicians.
“Any politician who wants to do anything, goes as far as to buy tax clearance because you need to assess why somebody is having over 20 houses and the taxes paying is equivalent to nothing.
This is not the first time the issue of tax on telecoms is coming. Recall that the minister came out sometime to say, that the telecom sector is already over taxed.
Mr Okunade went on to suggest that the federal government or the Ministry of Finance should consider how to gain people’s faith in some of the things for which we are utilizing some of these taxes in such a way that the present strategic taxes that we are paying people are getting value for money.
We don’t need other taxes. The ones we have increased, the tax base one, create the tax administration, make it seamless in such a way that you can pay your taxes anywhere, and when you see the dividend of what you’re paying for.
“It an estate where people are paying their normal fee and you can see your roads being tared, you have streetlights in your area, nobody will force you to pay your statutory monthly fee in that estate.
“But a situation where you make those monthly fee and there is insecurity no electricity, the roads are bad, you will see people fighting and say say no, I cannot.
“First, the government must account for the ones that they have collected; once this is done, the citizens will be quite delighted.
“They go out and duplicate things, but they don’t copy the good parts. The dividend of what those governments in those similar locales are imitating.
Mr Okunade stated that unless we have a dividend for why we pay taxes, a condition in which organizations would not invest in road development, a situation in which they will not generate power on their own, more individuals will pay taxes.
Related posts:
Cash limit policy in interest of Nigerians, Economy-Okunade
Friday Newspaper Review with Ify Onyegbule and Sesan Okunade
Sesan Okunade, Smart Apejoye review today’s Newspaper headlines
Sesan Okunade, Chris Kehinde Nwandu dissect Newspaper headline
NACCIMA urges Nigerians to pay taxes
Nigeria must increase taxes, reduce subsidies – Calderon
Taxes: Aregbesola solicits support of traditional rulers
Trump takes another swipe at Macron over French fuel taxes
