The Trade Union Congress of Nigeria, TUC, has requested the federal government to drop its planned introduction of new Communication Service Tax, CST, which if passed into law, is believed to place a nine per cent tax charge on all phone calls, SMS, MMS, data package and other telecoms transactions.
In a statement jointly signed yesterday by the TUC president, Comrade Bobboi Bala Kaigama, and its acting Secretary-General, Barro Simeso Amachree, the union described the proposed tax as an exploitation of the already impoverished masses, wondering how a worker earning the 18,000 minimum wage can pay the tax.
“We call on the Federal Government and the National Assembly to suspend the bill immediately because the masses are already overburdened with multiple taxation. It makes no sense for the country to initiate policies that would stifle businesses when it seeks to woe and attract even more investors.
“If we sufficiently understand the minister, we wonder how he expects such tax to be paid by any worker in a country where the national minimum wage is N18,000 and at a time when workers’ take-home pay no longer takes them home. Apart from exploiting the already impoverished masses, the policy would also discourage investment and lead to loss of jobs,” the union stated.
Recall that the Minister of Communication, Mr. Adebayo Shittu had, at a private sector dialogue session organised by the Lagos Chamber of Commerce and Industry, LCCI, in Lagos, hinted that the planned tax which has passed first reading in both chambers of the National Assembly was conceived to help the federal government develop the ICT sector and implement its policies and plans in an integrated manner.
He stated that the country would earn as much as N20bn monthly if the bill is passed into law, adding that it would also help to cushion some of the country’s economic challenges and fund budget deficits in no small measure.
But voicing its discontent over the issue, the union wondered why the common people should always be at the receiving end of government policies, asserting that most government officers rarely pay for anything, including their children’s school fees and utility bills.
It said, “While we appreciate the minister’s concern on how to fund the budget, should the government’s focus not rather be on ensuring more judicious use of revenue derived from value added tax (VAT), Pay-As-You-Earn (PAYE), stamp duties, vehicle license, passport fees, customs duty, petroleum profit tax (PPT) and other taxes collected from the masses and companies? And would it not be more appropriate for the desired additional taxes to be imposed on the GSM operators and other players in the communications industry rather than the poor masses?”
“The cost is on us the masses,” the statement said, asserting that the fact that the country is in economic straits and needs to generate more revenue to deliver on government promises, “does not mean that satanic laws that adversely affect disposable income and gross domestic product (GDP) should be promulgated.”
The TUC, which said it was not consulted in the stakeholders meeting where the decision was taken, averred that various tiers of government bent on increasing their revenues must do so by looking inward to the vast deposits of natural resources within their respective jurisdictions.
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