Operators in Nigeria hit back at a government plan to tax mobile and cable services, claiming the move would hamper economic development by effectively taxing consumers twice.
Local newspaper The Guardian reported the Association of Telecommunications Companies of Nigeria (ATCON) objected to a proposal to reprise a planned 9 per cent tax on communications services, a move originally explored and rejected in 2016.
ATCON president Olusola Teniola told the newspaper the prior plan was dropped due to concerns over the potential impact on Nigeria’s ICT sector, which he said was considered central to restarting economic growth.
A related report by This Day cited Teniola as pledging to fight the plan, which operators in the country believe would inevitably lead to higher consumer prices and, when combined with existing VAT requirements, result in users paying twice.
Details of Nigeria’s plans came a matter of days after neighbouring Ghana hiked its telecoms service tax from 6 per cent to 9 per cent, a move the government stated was needed to help combat cybercrime, protect users and fight money laundering.Subscribe to our daily newsletter Back