Communication Service Tax Unacceptable - AAN

ActionAid Nigeria (AAN) has rejected the proposed bill to impose Communication Service Tax (CST), up to 9 percent on all phone calls, short message service (SMS), multimedia messaging service (MMS), data Packages, and pay television, demanding the termination of the bill.

Dr. Ojobo Ode Atuluku, country director of the agency said Tuesday in Abuja that the proposal is not acceptable as it puts a huge burden on poor people who are already paying a very high price from multiple taxes.

"The Federal Government needs to focus on luxury and property tax as more progressive nations are doing to generate revenue for their countries. The bill, if passed into law, would be additional burden on the poor who are already bearing the burden of the misrule of the Nigeria political and business class. It is akin to punishing the poor for the sins of the rich," Atuluku said.

She said that the recent explanation that proceeds of the tax would be invested on infrastructural development is untenable.

“Why must the poor, who will be the most affected, be the ones paying for infrastructural deficits brought about by the recklessness of the rich political class and their collaborators in the business class?’ Atuluku asked.

She also urged all communication companies to accept their responsibilities and pay their fair share of taxes, saying any attempt to pass their tax responsibilities on Nigerian consumers is not acceptable.