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Sunday, 9 February 2020

Value Added Tax on Any Call Made, SMS and Data Purchased

The wonders never stop. Nigerian telecom service providers are now competing for each subscriber to pay a 7.5% tax. Either for sending SMS, buying data, or making calls.

Last month, President Muhammadu Buhari signed a bill to finance the country into law, and had a major impact on Nigeria's financial laws. The government believed that the new tax system would not negatively affect Nigerians, but this appears to be unrealistic.

Subscribers already complain bitterly on social media that the VAT should not apply to calls and data, but it seems that telecom companies are pledging stupidity in them.

So we're trying to test the amount of VAT charged to calls, and that's what we got after making a 6-second call with a friend. For 6 seconds, N2 was charged. 67k and 10sec call, charged N5.

Below is the pop-up message the subscriber received, after making calls.

For SMS that was supposed to be N4, it is now N4.10 for every SMS you send.

The Nigerian Licensed Telecommunications Operators Association (ALTON) has informed Nigerians of the new VAT rate applicable to all telecom products and services purchased as of February 1, 2020.

Dear Customer,
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”, a message from Spectranet, one of Nigeria’s internet provider, reads.

7.5% VAT is not intended for rich or poor Nigerians, it is for everyone ... telecommunications, electricity, television, food and beverages, oil companies will now collect VAT every time they invoice you.

Hope you have 7.5% VAT charged or not?
Share your encounters in the comments section below.

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