The Association of Telecommunications Companies of Nigeria (ATCON) has proposed communications tax of 0.2% as an alternative to the current Communication Service Tax (CST) bill of 9% before the National Assembly.
Mr. Olusola Teniola, President, ATCON, who made the call during a courtesy call on the Senate President, Saraki in Abuja, also recommended a tax reform that increases the current VAT by a new 1% added for the purpose of development of communications.
‘In 2013, we planned to achieve 30% Broadband penetration by 2018. Current access figure is clearly some way off this target and needs measures to boost growth in usage. A sharp rise in tax as being proposed in the CST will achieve the exact opposite of our desire. Another alternative is that the tax being proposed in the Bill be limited to 0.2%.’
The full speech by Teniola is reproduced below under ‘For The Record column.’