Between VAT Increase And A New Telecom Tax

Must Read

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

10 Nigerian Movies to Watch on Netflix this Weekend

A lot of Nigerian movies have come out on Netflix recently. If you’ve been looking for what to watch...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...
- Advertisement -

Recently, the Nigerian Federal Executive Council (FEC) approved FG’s plan to increase the Value Added Tax (VAT) rate from the current 5.0% to 7.2%, effective from January 2020. This is to help the Federal Government (FG) shore up its weak revenue base.

However, as President Buhari prepares to present the 2020 appropriation bill to the National Assembly, there are indications that lawmakers may oppose the proposed VAT
increment, in a bid to shield Nigerians from being inflicted with more hardship.

Alternatively, lawmakers are pushing for a new levy on communication services, as the Communication Service Tax (CST) bill of 9.0% passed its first reading at the Senate, last week.

In our opinion, the proposed CST is expected to have a similar impact on consumer wallets, to the proposed increment in VAT. More so, communication and internet connection now
rank along with other necessities such as food, clothing, and shelter. More importantly, many individuals; micro and small businesses rely on data and telecommunications services for survival, hence a 9% charge on telecom service may inflict more pain on the very people the lawmakers are trying to protect.

Read Also:  FG Plans to Review the Concession of It’s Silos in Nigeria
- Advertisement -

In all, while we believe the FG needs to ramp up its revenue base by expanding its tax-net,
introducing new taxes will not necessarily amount to more tax revenue as this may further worsen an already faltering economic momentum.

              “United Capital Plc Research (UCR)”

- Advertisement -
Between VAT Increase And A New Telecom Tax - Brand SpurBetween VAT Increase And A New Telecom Tax - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Read Also:  FG Plans to Review the Concession of It’s Silos in Nigeria

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Between VAT Increase And A New Telecom Tax - Brand SpurBetween VAT Increase And A New Telecom Tax - Brand Spur

Latest News

HealthPlus crisis: Mrs. Bukky George unfair to me – Leo Stan Ekeh

Mrs. Bukky George first contacted the Zinox Chairman, Leo Stan Ekeh via SMS on March 31st, 2020 at...

Single Mother’s Hope Restored as Airtel Saves Infant with Hole in Heart

Leading telecommunications services provider, Airtel Nigeria has fulfilled its promise to save the life of Daniel Akani, a physically impaired child who was diagnosed...

Customers meet farmers supplying Shoprite store farm-fresh produce

Nigerian farmers will have the opportunity to sell their fruit and vegetables directly to Shoprite customers on Saturday, 28 November, as part of the...

Here Are The Most Profitable Startups That Will Bring You Big Gains In 2020

As the pace of technological advancement increases, the scope for the evolution of newer start-ups is on the rise. This is a time when...

Panasonic releases 4K PTZ Camera suitable for shooting live videos

Panasonic recently released 4K Integrated PTZ Camera AW-UE100W/K equipped with a range of functions including 4K 60p/50p shooting and 12G-SDI output. The camera supports a...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Between VAT Increase And A New Telecom Tax - Brand SpurBetween VAT Increase And A New Telecom Tax - Brand Spur