FG adds new tax on telephone calls

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FG adds new tax on telephone calls

The Federal Government has added a new tax on phone calls to fund free healthcare for the Vulnerable Group in Nigeria.

 

The telecom tax in the equivalent of a minimum of one kobo per second for phone calls is captured in the National Health Insurance Authority Bill 2021 signed by the President Buhari last week, as one of the sources of funds required to finance free healthcare for the Vulnerable Group in Nigeria.

 

The Fiscal Policy Partner and Africa Tax Leader at PricewaterhouseCoopers, Taiwo Oyedele, said; 

 

“S.26 of this new law imposes a telecommunications tax of not less than 1kobo per second on GSM calls. With call rates at about 11kobo per second, this translates to a 9 per cent tax on GSM calls.

“The tax is one of the sources of money to the Vulnerable Group Fund to subsidise the provision of healthcare to the group defined to include children under five, pregnant women, the aged, physically and mentally challenged, and the indigent as may be defined from…



Source: Linda Ikeji