Senate Set To Impose 9% Tax On GSM, Cable TV Subscribers


The introduction of taxes on communication and cable television services scaled first reading at the Senate on Wednesday.

The introduction of the tax, it was learnt, was to replace the 2.2 per cent increase in the Value Added Tax being planned by the Federal Government.

The Bill for an Act to establish the Communication Service Tax was sponsored by a former Senate Leader, Ali Ndume.

According to Senator Ndume, the bill was taken by the Senate, the imposition of tax on communication service was a better way of distributing wealth in such a way that would not affect the ordinary people.

He said increasing VAT would have very devastating effects on the economy as it would raise prices of goods and services.

The bill provides the charging of nine per cent on calls and data usage.

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