Nigerian tax proposal sparks operator ire

Nigerian tax proposal sparks operator ire

The Association of Telecommunications Companies of Nigeria (ATCON) has raised objections to a suggested 9% tax on communications services proposed by the country’s government.

The tax increase was first floated in 2016 but was shelved, with ATCON president Olusola Teniola telling the local new outlet The Guardian that this was due to fears that the tax would drive prices up for consumers and thus harm both the telecoms sector and, as a result, the country’s wider economic growth.

Speaking to the news outlet This Day, Teniola noted that the 9% tax would stack on top of current VAT and essentially mean that subscribers were paying twice.

The proposal resurfaced just days after Ghana increased its service tax for telecoms to the same percentage, with the country’s government arguing that the windfall would help protect subscribers from cybercrime and money laundering.

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