Stakeholders reject FG’s planned 2% tax on phone calls

By Chinenye Anuforo

Telecommunications, stakeholders have rejected Federal Government’s plan to charge two percent tax on all telephone calls, saying it would impose more pains on subscribers.

The stakeholders who spoke in separate telephone interviews to Daily Sun urged government to desist from continual perception of viewing telecom/ICT as a cash cow that can be taxed to raise revenue.

Analysts have argued that the above perception has been detrimental to the industry growth.

The 2 per cent tax, which is the equivalent of a minimum of one kobo per second for phone calls, is part of the sources of funds required to finance free healthcare for vulnerable groups in Nigeria, according to the National Health Insurance Authority Bill 2021 signed by President Muhammadu Buhari penultimate week. 

Jide Awe, an ICT expert explained that while the tax appears to be for a noble cause, its application at a trying period like now negates the present need for ICT penetration and advancement of  the digital economy.

“It is advisable that other creative avenues be explored to fund healthcare for the vulnerable in Nigeria.

The continual perception of viewing telecom/ICT as a cash cow that can be taxed to raise revenue is unhelpful. It fails to see the need to have more people participating, developing and contributing to growth and their communities through the ICT/Digital economy. It is vital for productivity and progress in this age.” Awe pointed out that the impending phone tax will increase the cost of calls and the vulnerable would certainly be the hardest hit. “As a nation, we should be pushing for and even prioritising more ICT and digital inclusion. Indeed, many, especially the vulnerable and traditionally excluded, are still digitally excluded.

We need to see the connection and make the link – which is that as a matter of urgency and priority, it is about the thinking to get more of our people, in significant numbers, to use, deploy and develop Science, Technology and Innovation (STI) to achieve sustainable development and global competitiveness. Get more people into STI usage and development not out – for job creation, development of critical sectors like Education, Health, Agriculture, etc and to prepare for the new types of jobs and the future of work. It is the essence of the Science, Technology and Innovation Strategy for Africa 2024 (STISA-2024) adopted by all African Union countries to ensure African economies become innovative, productive and prosperous; which will drive national competitiveness and improve social welfare.”