Babatunde Fowler, chairman of the Federal Inland Revenue Service (FIRS) has said there is no harm in introducing Communication tax as Nigerians talk a lot on the phone.
Speaking to TheCable on Monday October 7, the FIRS Chairman said Nigerians talk more than is required so for them to have the capacity or revenue to talk that much, there is no harm in giving a cut out of it to the government.
He said: “I will put it this way, Nigerians talk a lot on the phone; they even talk more than is required so for them to have capacity or revenue to talk that much, I don’t see any harm in paying a little bit more to government.”
“We compare ourselves to developing countries but Ghana introduced a 2% education tax and used it to fund their universities and that is why Nigerians are now going to university in Ghana. They didn’t look for aid, they did it by themselves.
While lawmakers are pushing for a 9% charge for using telecommunication services in place of the Federal Executive Council (FEC) proposed 2.2% increase in value-added tax, Babatunde Fowler also explained how the increased VAT will be taken from Nigerians.
He said: “All we are saying is that those who use online facilities, we will give instructions to the banks that once they make the payment, they will just charge 5% VAT and remit it as an agent to FIRS.
“By the VAT Act, the minister has the right to change the rate but this government, I believe wants to carry every stakeholder along including those in the house and explain to them that this increase is for the benefit of all Nigerians. And it will only apply to what I call privileged items like buying a car or lunch in an expensive restaurant. The money will help the state look after the needy among us.”