Nigerians have reacted strongly to a new recommendation by the International Monetary Fund urging the Federal Government to introduce fresh taxes on telecommunications services and extend Value Added Tax to fuel products, warning that such measures could worsen the cost of living crisis.
The News Chronicle reports that telecom customers and business leaders who contend that Nigerians are already burdened by many taxes and worsening economic difficulties are worried about the plan. Critics argue that increasing the prices of necessities like fuel and mobile communication could further strain companies and families already suffering under inflation.
Deolu Ogunbanjo, head of the National Association of Telecom Subscribers of Nigeria, said the recommendation is out of touch with the reality of the telecom industry. Operators already battle more than 40 other taxes and levies, he said, therefore consumers finally pay for these costs by means of increased subscription prices.
Although the IMF thinks more taxation changes are necessary to raise government income and support development initiatives, it also noted that growing poverty and food insecurity call for cautious implementation of any new policies. Before putting more taxes into effect, the company urged governments to enhance social support networks.
Industry groups, including telecom providers, cautioned that more taxes would impede attempts at digital inclusion and raise the price of communication services for millions of Nigerians. Many stakeholders are asking the government to pay attention to raising tax collection effectiveness instead of bringing fresh taxes on already strained populace.
