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Telcos Hike Tariffs for Calls, Data as FG Begins 7.5% VAT

Telecoms subscribers have started paying more for calls and data services as the federal government begun February 1, the implementation of the 7.5 per cent VAT, which was increased from 5 per cent.

Telcos Hike Tariffs for Calls, Data as FG Begin 7.5% VAT

Gbenga Adebayo and Gbolahan Awonuga, chairman, and head of Operations, respectively of Association of Licensed Telecommunications Operators of Nigeria (ALTON), have confirmed in a statement.

The statement was issued to notify the subscribers across all the networks of implementation of the VAT increase effective February 1.

According to ALTON, purchases of telecommunication products and services will be affected by the implementation of the VAT increase.

The umbrella body of telcos said the VAT increase would reflect on the charges of phone calls, text messages and data for internet in Nigeria.

“Further to the assent of the Finance Bill by President Muhammadu Buhari, which reviewed the Value Added Tax (VAT) from 5 per cent to 7.5 per cent, ALTON wishes to notify consumers that our members will begin applying the new VAT rate on all purchased telecommunication products and services with effect from 1st of February 2020,” statement noted.

ALTON gave the assurance its members will adhere to tariff transparency and quality service delivery in implementing the VAT increase.

President Muhammadu Buhari recently signed into law the finance bill, which was designed to support its implementation and to create a truly enabling environment for business and investment by the private sector.


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