Nigerians Reacts As Telecoms Increase Charges For Calls, Data And SMS Over New 7.5% VAT

Telecommunication companies have increased the tariffs for calls, SMS and data services following the implementation of the new 7.5% Value Added Tax (VAT) on February 1, 2020, by the Federal Government.

KanyiDaily recalls President Muhammadu Buhari had signed the 2020 Finance Bill into law, which seeks to increase VAT from 5 percent to 7.5 percent.

Buhari said the finance bill was “specially designed to support its implementation and to create a truly enabling environment for business and investment by the private sector.”

Following the passage of the bill, Nigerians have started paying more for data, SMS and calls because telecommunication companies have implemented the country’s new 7.5% VAT.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) had confirmed it 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.

ALTON 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.

The new 7.5% VAT increase have triggered a lot of reactions from Nigerians on social media.

Pls see the screenshot that indicates the 7.5% VAT charge is now being applied on mobile phonecalls

I guess only the rich make phone calls in Nigeria?

Where are the Buharinomics experts & Ajurian economists that claimed the increase won’t affect the poor?

Purveyors of poverty! pic.twitter.com/ihoGghTBID

— The Revolutionary Seeker (WAEC) (@The_Seeker76) February 5, 2020

Everyone complaining of 7.5% VAT… This is me knowing there something called WhatsApp Call! pic.twitter.com/TJbLl49Uc8

— AYO OF WAKANDA? (@Medubi_) February 5, 2020

With this new 7.5% VAT somebody’s daughter would expect somebody’s son to spend more than 20 mins with her on the phone?

Who does that? pic.twitter.com/XDdvhjhxx9

— Tunde Jimoh (@iamtundegold) February 5, 2020

When lovers start professing their love to one another on phone ontop this 7.5% VAT

MTN: pic.twitter.com/DaZyN3lLIr

— Future Pepsi Ambassador (@Obong_Hanson) February 5, 2020

If only this 7.5% VAT will be used to develop the Country, But all this Revenue generated from the Poor Masses will still be Looted by our Corrupt Officials and also for rehabilitating Fake repetent Boko Haram Members.
Nnamdi Kanu was Right, Nigeria is a ZOO!

— Agunego Kosisochukwu (@iamversatile) February 5, 2020

Normally an SMS is N4 but today i sent a text and i observed it was N4.10K. Imagine 10kobo from 100Million people.

7.5% VAT is in everything now. Thank you Buhari for the yahoo yahoo government.

— King Ishuo (@IshuoAX) February 5, 2020

7.5% VAT won’t affect the poor masses yen yen yen.
7.5% VAT is only for luxuries yen yen yen.
Now MTN is adding 7.5% VAT to calls/texts or sending texts & phone call is for the rich alone?.
The annoying part is we didn’t even have good roads to show for all the before before tax.

— Zaddy Ajala (@UNCLE_AJALA) February 5, 2020

Buhari I see the Chess game ur playing

U gave us N33,000 via minimum wage
And ur taking the money back via 7.5% VAT

Buhari u rule like the devil
U give nothing for free

Buhari is Nigeria’s #coronavirus pic.twitter.com/7vjR9yM0k3

— Captain Jack Sparrow ?? (@Jenkky_2fit) February 5, 2020

Really, you see naira Marley was right, ole ni everybody, this country is a scam, how can you remove 7.5 VAT on top the airtime I bought with my own money ? pic.twitter.com/cu7qCydKvX

— Toberry (@Toberry15) February 5, 2020

I swear, no Nigerian should go to hell; the country is already Hell.

No jobs, no light, shitty educational system, insecurity, poor transportation system, low life expectancy, poor health system, #LagosIsWalking, 7.5% VAT even on calls and SMS. Is it a crime to be Nigerian? pic.twitter.com/u3jRrdTCQZ

— Oga Ken (@iamKennethAba) February 5, 2020

You should be calling out Federal Govt. not MTN.
Your President signed the Financial Bill into Law few days ago and it has taken effect.
7.5% VAT for Every Call, SMS, Recharge, Transfer or even Borrowing???

— Agunego Kosisochukwu (@iamversatile) February 5, 2020

7.5% VAT on all outgoing calls.?
7.5% VAT on data purchase?

What are turning is to???‍

Soon they will be collecting VAT on the air we a breathe? pic.twitter.com/0bDI0CR2kh

— Favoured DJ Frendzy (@dj_frendzy) February 5, 2020

Is @MTNNG deducting any 7.5% VAT from every voice call? I need answers abeg before I squeeze my SIM card and switch to another network.

— Udochi Victor (@wakafey1) February 5, 2020

They said this “7.5% VAT” won’t affect the masses just those living luxurious life will get the most of it.

What is this one for calls and data that am seeing. Can you people explain please? pic.twitter.com/qIvjxaOItv

— SULTAN OF LAGOS (@SurtanLeee) February 5, 2020

Normally an SMS is N4 but today i sent a text and i observed it was N4.10K. Imagine 10kobo from 100Million people.

7.5% VAT is in everything now. Thank you Buhari for the yahoo yahoo government.

Buhari I wish u parents used Condoms that night pic.twitter.com/WmqWOV6xEY

— Captain Jack Sparrow ?? (@Jenkky_2fit) February 5, 2020