VAT increase: Nigerians to pay more for data, calls as telecom companies apply new tax rate

VAT increase: Nigerians to pay more for data, calls as telecom companies apply new tax rate

- Telecommunication companies are soon to implement the country’s new 7.5% Value Added Tax (VAT) increase

- The telecom operators disclose that purchases of telecommunication products and services will be affected by the implementation of the new increase in the VAT

- The operators say the VAT increase will reflect on charges of phone calls, text messages and data for internet in Nigeria

Nigerians will soon start paying more for data and calls when telecommunication companies start implementing the country’s new 7.5% Value Added Tax (VAT) increase.

The Association of Licensed Telecommunications Operators of Nigeria (ALTONS) said it will start implementing the country’s new VAT increase from Saturday, February 1, 2020, Guardian reports.

The telecom operators disclosed that purchases of telecommunication products and services will be affected by the implementation of the new increase in the VAT

“Further to the assent of the Finance Bill by President Muhammadu Buhari…which reviewed the Value Added Tax (VAT) from 5% to 7.5%, ALTONS wishes to notify consumers that our members will begin applying the new VAT rate on all purchased telecommunication products and services with effect from 1st of February 2020,” ALTONS said in a statement jointly signed by its chairman Gbenga Adebayo and head of operations Gbolahan Awonuga.

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Telcos said the VAT increase will reflect on the charges of phone calls, text messages and data for internet in Nigeria

The companies however assured Nigerians that they will adhere to tariff transparency and quality service delivery when implementing the VAT increase.

Legit.ng had reported that despite agitation over the proposed VAT increment by the federal government, the minister of finance, budget and national planning, Zainab Ahmed, said that the implementation of the new value-added tax rate would begin on February 1.

Cable news reports that the minister announced this at the ongoing inauguration of the Federal Inland Revenue Service (FIRS) board.

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Legit.ng gathered that President Muhammad Buhari signed the finance bill, which increased VAT by 50% into law on January 13.

The accountant-general of the federation, Ahmed Idris, had, on Wednesday, January 15, said that the implementation had begun.

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In another report, the Central Bank of Nigeria (CBN) has called the attention of the federal government to the rising debt profile in the country.

The apex bank in Nigeria made this call during the 271st meeting of its Monetary Policy Committee (MPC) in Abuja on Friday, January 25, Premium Times reports.

The caution was contained in a state made by the governor of the CBN, Godwin Emefiele, who pointed out that the nation's debt was growing faster than its local and international revenues.

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Source: Legit Nigeria

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