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As if it wasn’t hard enough buying data for a high price,
all major telecommunication companies have decided to ramp the stress up (kind of like they all had their “hold my beer” moment)
by charging a mandatory 7.5% VAT on calls, SMS and Data.
This came in full effect recently, and users had a lot to say; most of the opinion was that the VAT should only be on SMS, but the network operators aren’t having any of that.
So, if you would like to check this out, simply make a phone call,
and send a text message; you’ll get a message that contains (7.5% VAT Inclusive).
This all started when the President of Nigeria signed a Finance Bill into law.
It had (and still has) far-reaching implications on the existing fiscal laws.
Even when the President promised that the new tax regime wouldn’t hurt Nigerians, it does seem that telecoms companies are taking it out on us anyway.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has given its official statement on the issue,
stating that the VAT rate would be effective as of 1st of February 2020 (By now, this is already in effect)
Spectranet, an internet provider, released a message which says thus:
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.”
Conclusion on All Networks now charge 7.5% Tax on Calls, SMS, and Data
As it can be seen, the new 7.5% VAT is already in full effect and is no respecter of anyone – rich or poor.
There is no major way to circumvent this tax, but if it’s something that would irritate you going forward, you can just look for alternatives, like WhatsApp for your calls and texts.