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Calls, messaging and data now cost more in Nigeria with the inclusion of 7.5% VAT

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With effect from 1st February 2019, the use of telecommunication services in Nigeria now attracted a 7.5% value-added tax (VAT).

It will be recalled the government of Nigeria announced an increase in VAT from 5% to 7.5%. Already, telecom subscribers have started receiving notifications from their service providers as they use their phones about the inclusion of 7.5% VAT in their billing. Currently, the discussion of 7.% VAT is trending on Twitter in Nigeria.

Chairman of Association of Licensed Telecommunications Operators of Nigeria, ALTON, Gbenga Adebayo confirmed the development in a statement issued to notify subscribers across all networks of the commencement of implementation of the VAT increase with effect from 1st of February, 2020.

ALTON noted that the increase will affect purchases of telecommunication products and services. According to ALTON, the VAT increase would affect the charges of phone calls, text messages and data usage in the country.

ALCON said: “Further to the assent of the Finance Bill by President Muhammadu Buhari, which reviewed the Value Added Tax from five percent to 7.5 percent, ALTON wishes to notify consumers that our members will begin applying the new rate on all purchased telecommunication products and services with effect from February 01, 2020.”

The organization assured Nigerians that her members would stick to tariff transparency and quality service delivery in implementing the new changes in the VAT regime.