No to more tax!
The National Assembly must prove to the people of Nigeria that it is indeed constituted to uphold and defend the interests of the people of Nigeria. One way we will test the loyalty of the National Assembly to the Nigerian people is its members’ position on the proposed Communication Service Tax (CST) Bill. The Bill, […]
The National Assembly must prove to the people of Nigeria that it is indeed constituted to uphold and defend the interests of the people of Nigeria. One way we will test the loyalty of the National Assembly to the Nigerian people is its members’ position on the proposed Communication Service Tax (CST) Bill. The Bill, which has already passed the first reading at the House of Representatives and is being sponsored at the Senate by its leader, Senator Ali Ndume, is pure and simple an “anti-consumer” law. If the CST Bill is not prevented from being passed into law, the Nigerian communication service user will have the burden of being charged an additional 9% in tax for services rendered by his or her service provider. The double – if not multiple -jeopardy of this anti-people action is that the CST will apply to subscribers who are already being charged a cost for the service subscribed to. It is important to note that the cost of the service provided already has VAT as a tax element and this is aside other sundry charges that apply in the Nigerian environment where the citizens are already over-taxed. Let us not forget also that this CST Bill will affect every telephone subscriber as well as satellite TV subscribers such as DSTV, because the Bill included Pay TV as a taxable service.
We all know that times are hard and the government is beaming its searchlight in every nook and cranny to see where additional revenue to sustain the nation’s 2016 budget will come from.
It is rather sad and shocking that those behind this Bill have not sufficiently considered its far-reaching implications on the users of these services, who are mostly commoners representing the larger segment of the Nigerian populace. Not to mention the effect that this tax will have on the telecommunications sector that is already screaming blue murder on the issue of multiple taxation. Apart from the subscribers who will have to pay more for communication services, the service providers may be forced to reconsider their venture in Nigeria in view of rising operational costs. We cannot but imagine the effect of a mass pull out of investment at this time by foreign investors and the spiral effects on the economy as a whole.
If the players in the industry should prune down on their capital and human investments, I wonder who will benefit from the proposed legislation. The National Assembly must, as a matter of urgency, listen to the cry of communication service consumers across the world that has collectively condemned the proposed law. Only recently, the GSM Association (GSMA) joined other stakeholder groups in Nigeria to demand for the immediate stoppage of the legislative processes on the CST Bill. The Nigerian people are over-taxed already. Relief -and not more levies – is what the average Nigerian needs from their representatives in all arms of government.
Ismail Tilba, Jimeta, Yola