Subscribers reject IMF call for more telecom taxes, say sector already overtaxed
By Aboki Forex —
The International Monetary Fund has advised the Nigerian government to introduce excise duties on telecom services and extend VAT to fuel products. But telecom subscribers are pushing back hard.
The IMF made the recommendation in its updated Article IV consultation report on Nigeria. It said the country needs more tax policy reforms to create fiscal space for development spending and social interventions. It warned that the current pace of capital expenditure may not be sustainable without stronger revenue growth.
Speaking with The Guardian, the President of the National Association of Telecom Subscribers of Nigeria, Deolu Ogunbanjo, said the IMF does not understand what is happening in the sector. He said the telecom sector currently faces over 40 different types of taxes.
Ogunbanjo said the association had already rejected a planned five per cent excise duty on telecom services. He said the body went to court to secure an injunction against it.
The IMF acknowledged that Nigeria's newly signed tax laws should improve revenue collection. But it said this alone may not be enough to meet the country's fiscal needs. It stressed that the timing of any reforms must take into account rising economic pressures.