By Constance Athekame
Abuja – An ICT expert, Mr Rex Abitogun, has called on the Federal Government to shelve the proposed nine per cent Communication Service Tax (CST) Bill before the National Assembly in the interest of Nigerians.
Abitogun, who is the Chairman of the Nigeria Computer Society, Abuja chapter, made the call in an interview with the News Agency of Nigeria (NAN) in Abuja on Monday.
The News Agency of Nigeria (NAN) reports that Federal Government is proposing the introduction of CST, which seeks to impose a nine per cent levy on telecommunication subscribers for various communication services.
The new Bill seeks to impose charges on service fees payable by users of electronic communication services at nine per cent such as voice calls, Small Messages (SMS ) Multimedia Multiple Messages (MMS) , data usage, among others.
It will mandate service providers to file monthly tax returns with the Federal Inland Revenue Services (FIRS) with strict penalties for non-compliance.
Justifying the Bill, the Minister of Communication, Mr Adebayo Shittu said that the move was expected to generate at least N20 billion monthly as revenue for the Federal Government.
Abitogun said that Nigerians were already suffering at the moment, additional levies from government would further increase their plights.
“The communication tax being proposed is another way of putting a serious problem on the average Nigerian or the common man.
“For me, this is not acceptable, it is a way of government taking advantage of the poor,’’ he said.
Abitogun said that already the companies were burdened by other taxes, adding that another nine per cent “is not fair on Nigerians, so government needs to have a rethink on the issue.’’
“Mobile phones service providers are paying VAT, they pay company income tax and when you add all these to the communication tax, everything goes down to the common man.
“Any time I buy recharged card and I pay, there is a percentage that goes to government and at the end of the year when they send their annual report, government deducts the company income tax.
“Now when you are now talking about nine per cent tax on SMS, MMS, and others, who is going to pay all these extras.
“It is not the operators that will pay but you and I that walk on the streets. Each time you place a call you, there is payment, which should not be,’’ he said.
The chairman said that it was expected that stakeholders both in the public and private sectors should rise up and kick against the tax.
According to him, it was in the news some days ago that the Nigeria Labour Congress (NLC) has kicked against the bill.
He said that they should not just stop there as “this is beyond making press statement’’.
“l expect NLC and Trade Union Congress (TUC) to take to the street and stop that bill beyond going through reading because if it goes through second and third reading then it becomes a law.
“Once it becomes a law, it is something that all of us will pay for.
“Government needs money no doubt, what it should do is to look at the different tax policies, strengthen and streamline them,’’ he said. (NAN)