The Association of Licensed Telecoms Operators of Nigeria (ALTON), has reacted to the recent move by the Federal Government to add a one kobo per second tax on phone calls, saying it is a bad move.
BizWatch Nigeria had reported that President Muhammadu Buhari introduced a new telecommunication tax that would see Nigerians pay 9% tax on the phone calls they make.
Calling for a review of the tax law on phone calls, ALTON said the new development would be double taxation on Nigerians.
The umbrella body of the telcos said, “For us as at ALTON, it is bad fate on the part of the government, and it is badly intended. This is because when we came out that the government should look at our cost of operations and give us room to review tariffs, everybody treated us like an outcast.
“The same government is now coming in a matter of days to say they are introducing new taxes. So, when they were saying to us that we cannot increase tariff because it is insensitive to the plight of the people and now, they brought another tax through the back door, we think it is bad fate and badly intended.
“So, if we cannot review based on the impact it will have on subscribers, why are they bringing in another tax, still on subscribers. Government cannot act in one way and say another thing.
“It will affect the subscribers because they get less value for what they pay for. It means now that when you buy an N100 recharge card, the percentage will be deducted from it and paid to the government.
“So, it is actually short-changing the people. What will happen is that operators will be mandated to collect this tax on their behalf and remit it to the government.”
