Mobile Operators Now Charges 7.5% Vat On Every Call Made And SMS Sent

It’s finally here. Nigerian mobile operators now mandates every subscriber to pay a tax of 7.5%. either for sending SMS or making calls.

Last month, President Muhammadu Buhari signed the country’s finance bill into law, with a sweeping effect on Nigeria’s fiscal laws. The government believed that the new tax regime will not adversely affect Nigerians, but that seems not to be the case right now.

Subscribers are already taking to social media to express their dissatisfaction about the VAT and the new system shouldn’t have applied to calls and data.

Below are samples of pop ups received by some subscribers after making calls or sending SMS.

7.5% vat on calls

For SMS that was supposed to be N4, it is now N4.10 for every SMS you send.

7.5 percent vat on sms

Association of Licensed Telecommunications Operators of Nigeria (ALTON) has notified Nigerians on the application of the new VAT rate on all purchased telecommunication products and services with effect from the 1st of February 2020.

“Dear Customer,

In accordance with the Finance bill 2019 signed on 13th January 2020, the Value Added Tax (VAT) rate has been revised from 5% to 7.5% with effect from 00:00 Hrs 1st February 2020.

“As a result, the prices of our data plans, devices & accessories have been revised to reflect the revised 7.5% VAT rate from 00:00 Hrs 1st February 2020. Thanks for your usual co-operation”, a message from Spectranet, one of Nigeria’s internet provider, reads.

Telecommunications, Electricity, Television, Food & Beverages, Petroleum companies will now collect VAT every time they bill you.

You’ll still have to pay tax for using Data, Calls or sending an SMS. Well, it may be time to start making use of call features on instants messages platform such as WhatsApp call, telegram an co.

Share your thoughts and experiences via the comments below.

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