A newly-proposed communications tax bill in Nigeria has been met with widespread criticism for attempting to exploit consumers, according to local reports.

The bill, proposed by the government last month and currently being reviewed by the National Assembly, would see consumers of data, voice, SMS, MMS and pay-TV services hit with a 9 per cent tax, levied on service fees.

Reports suggest the government wants to impose this to offset the effects of falling crude oil prices globally.

However, the plan has been heavily criticised this week, with Gbengba Adebayo, executive chairman of industry group Association of Licenced Telecommunications Operators of Nigeria (ALTON), arguing that “taxes and levies should be broader and distributed across all sectors of the economy”.

In an interview with Nigerian daily The Leadership, Adebayo talked of the challenges facing operators in providing affordable and quality services in Nigeria, as he accused the government of treating telecoms “as an extractive industry”.

“We are calling for a cross-sector, multi-stakeholder approach to reduce the growing burden of taxation on our industry,” he said.

A separate article from ThisDay reports it has spoken to a number of subscribers in the country, who have “vowed to reject the tax”, with fears that operators may also hike up charges given the costs faced in complying with the new laws.

If the bill is enacted into law, PwC Nigeria said service providers will be mandated to file monthly tax returns, with strict penalties for noncompliance.

“If any tax must be introduced on communications services, care must be taken to protect the poor and vulnerable in the society who nonetheless have to use telecommunications services for social inclusion and financial services, among others,” it added.