Nigerian Mobile Tax Should be Dropped

September 1, 2016 Taxation in Nigeria

ABUJA – Using mobile phones in Nigeria could soon be more expensive unless the government drops its newly proposed tax on telecommunication technology.

ActionAid Nigeria has decried a proposed new tax in the country, which would see a significant new cost imposed on the use of mobile calls, SMS, MMS, pay television, and mobile data.

The new tax would be levied at a rate of 9 percent on most mobile services.

The Country Director of ActionAid Nigeria D. Ojobo Ode Atuluku claimed that the bill would unfairly fall on low-income earners, who would face a disproportionately large impact from the tax.

She added that instead of focussing its tax efforts on low-value products, the government should pay its attention to luxury taxes and property taxes.

Ojobo Ode Atuluku also said that the tax would result in the poor bearing the burden “…of the misrule of the Nigeria political and business class”, a situation which would be akin to “…punishing the poor for the sins of the rich.”

As an alternative to dropping the new tax outright, Ojobo Ode Atuluku called on telecommunications companies to absorb the new tax, instead of passing it on to consumers.

Photo by: Dominik Syka