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Nigerian Govt to introduce 12.5% VAT on GSM Calls, Text and Data Usage

Federal Government is set to implement another 5% VAT on the GSM calls you make, text, and data usage. This is coming to meet the current 7.5% tax that was introduced back in February 2020, a 7.5% tax on calls, data, and SMS.

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With this new submission, it simply this means subscribers will now be paying 12.5% vat (a 5% inclusive excise duty) on telecommunications services in Nigeria.

With this policy, for every call made by telecom subscribers, they would now pay five percent of the total cost of the voice call, which would be deducted from the subscriber’s account by the telecom operator, and remit the same to the government.

The five percent excise duty is an additional fee that the telecom subscriber pays, which is different from the cost of voice call the federal government disclosed.

FG said the 5% excise duty had been in the finance Act: 2020 but was not implemented. Subscribers are already complaining on social media that the VAT shouldn’t apply to calls and data but apparently, the FG will implement it.

The Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, however, said operators would not be able to subsidize the five percent excise duty on telecom services as a result of the 39 multiple taxes that they pay, coupled with the epileptic power situation that had compelled operators to spend so much on diesel.

It is worth nothing that you can start utilizing the WhatsApp calls reach out to your love one in order to reduce this charges from your purse of even escape the 12.5% tax ahead.

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