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Nigerians react as 7.5% VAT increase affects phone calls, SMS 

Some Nigerians have just realised that they now have to pay 7.5% VAT every time they make phone calls or send an SMS. They don’t like this very much.

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Some Nigerians have just realised that they now have to pay value-added tax (VAT) every time they make phone calls or send a Short Message Service, SMS. They think this is strange. 

Many of them have expressed shock on Twitter while sharing screenshots of the notifications they received from their telecom service providers to the effect of the new VAT charges. Twitter user – Akamadi Jeremiah Aleakhue, made a phone call that lasted for fortysix seconds and was charged N5.06 with VAT included.  

Another user said s/he was charged N4.10 after sending an SMS which normally costs just N4. According to him, the 7.5% VAT will henceforth apply to every outgoing call and SMS. The same applies every time someone purchases a data plan. Now, the interesting thing is that the longer the call, the more VAT one pays. 

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While this is the law, most people still cannot seem to come to terms with it. And as you can expect, they are blaming President Muhammadu Buhari, whose administration proposed the 2019 finance bill that introduced the VAT increase.  

President Buhari said there would be new finance bills to accompany every proposed national budget going forward. Nigeria is witnessing a revenue crisis due to declining crude oil earnings. As such, the government is trying to raise additional money by imposing more taxes 

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[READ FURTHER: New tax regime to take effect from Jan 2 – FG)

Unfortunately, it is average Nigerians (who have very little earning power) that are mostly affected “negatively” by th2019 Finance Act. As you can see in the tweet below, the situation has left some people feeling very frustrated. 

Some people have even accused the government of indirectly taking back the new minimum wage which was recently increased to N33. 000. This is quite an accusation, although if you examine it closely, you may find yourself agreeing. 

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Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs. He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor. Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan. If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

5 Comments

5 Comments

  1. Adetunji Aina

    February 6, 2020 at 6:54 pm

    Someone should tell the telecoms service provider that 7.5% of N4=N0.3. So it should be N4.3(VAT INCL) NOT N4.10. I wonder why they always overcharge and nobody gets to complain. Also the banks have the habit of sending same SMS alerts three to give times charging this N4.10(Vat incl). These small overcharges multiplied by the number of affected subscribers turns into Millon’s if not billions daily for these service providers, which I can bet don’t get remitted to the appropriate authorities. Corruption per excellence.

  2. Anonymous

    February 6, 2020 at 11:22 pm

    That’s the of change Nigeria want. With wicked attitute.

  3. Atam Tordue

    February 9, 2020 at 11:44 pm

    Comment:we have clearly seen the change mr. president,less than #100 per litre of fuel to #145 and now 7.5% VAT.But then, is this the change we were expecting?

  4. Anonymous

    February 27, 2020 at 9:42 am

    Nigeria is not a country dat petty d poor.we suffer alot.and yet dey favour d rich.we are just d slave of our leaders.hmmm God help us through

  5. Babajay

    February 27, 2020 at 9:45 am

    Nigeria is not a country dat petty d poor.we suffer alot.and yet dey favour d rich.we are just d slave of our leaders.hmmm God help us through

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Energy

BREAKING: It makes no sense for oil to be cheaper in Nigeria than Saudi Arabia – President Buhari

Nigeria sells petrol at N161 per litre when the same is sold at higher in Saudi Arabia, Egypt, Ghana, Chad, and Republic of Benin.

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The Federal Government has said that it does not make sense for oil to be cheaper in Nigeria than Saudi Arabia, Egypt, Niger Republic and Republic of Benin, other oil-producing nations.

This was disclosed by President Muhammadu Buhari during his Diamond Jubilee Presidential Broadcast to mark the nation’s 60th independence anniversary on Thursday.

He said, “We sell petrol at N161 per litre when same is sold at N168/litre in Saudi Arabia, N211/litre in Egypt, N362/litre in Ghana, N362 in Chad, and N346 in Niger Republic among others.

“It does not make sense for petrol to be cheaper in Nigeria than Saudi Arabia.

Fellow Nigerians, to achieve the great country we desire, we need to solidify our strength, increase our commitment and encourage ourselves to do that which is right and proper even when no one is watching.”

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Tech News

Google launches Chromecast with Google TV

Google unveils the Chromecast device to stream contents from Walt Disney Co’s Disney+ and Netflix.

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Alphabet Inc’s Google, some hours ago, launched Chromecast with Google TV, a hardware platform designed to show contents from leading streaming services like Walt Disney Co’s Disney+ and the most popular streaming service company, Netflix.

The tech juggernaut unveiled the Chromecast streaming device that now comes with a remote control. It will cost $49.99 in the U.S, and will be available in other countries by the end of 2020.

The real advantage this device holds looks to be the underlying search smarts that serve as the foundation for so much of what Google does. Here’s the company discussing the new feature in a blog post:

“Google TV’s For You tab gives you personalized watch suggestions from across your subscriptions organized based on what you like to watch—even your guilty pleasure reality dramas. Google TV’s Watchlist lets you bookmark movies and shows you want to save for later.

You can add to your Watchlist from your phone or laptop, and it will be waiting on your TV when you get home. 

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Best of all, you’ll also have access to thousands of apps and the ability to browse 400,000+ movies and TV shows sorted and optimized for what you like—ask Google Assistant to see results from across your favorite apps, like YouTube, Netflix, Disney+, Stan, 9Now and ABC view, among others.”

The new Chromecast with Google TV comes in a compact and thin design and is packed with the latest technology to give you the best viewing experience. It neatly plugs into your TV’s HDMI port and tucks behind your screen.

Hardware composition:

  • Switching it on, the new Google Tv comes with a crystal clear video in up to 4K HDR at up to 60 frames per second in no time. With Dolby Vision, you’ll get extraordinary color, contrast, and brightness on your TV.
  • The Hardware also supports HDMI pass coupled with Dolby audio content.

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Coronavirus

COVID-19 Update in Nigeria

On the 30th of September 2020, 201 new confirmed cases and 1 death was recorded in Nigeria

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The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 58,848 confirmed cases.

On the 30th of September 2020, 201 new confirmed cases and 1 death was recorded in Nigeria, having carried out a total daily test of 2,549 samples across the country.

To date, 58,848 cases have been confirmed, 50,358 cases have been discharged and 1,112 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 509,555  tests have been carried out as of September 30th, 2020 compared to 507,006 tests a day earlier.

COVID-19 Case Updates- 30th September 2020,

  • Total Number of Cases – 58,848
  • Total Number Discharged – 50,358
  • Total Deaths – 1,112
  • Total Tests Carried out – 509,555

According to the NCDC, the 201 new cases were reported from 13 states- Lagos (77), Rivers (37), Plateau (25), FCT (13), Kaduna (12), Ogun (12), Adamawa (8), Taraba (7), Imo (4), Kwara (2), Osun (2), Abia (1), Oyo (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 19,461, followed by Abuja (5,709), Plateau (3,450), Oyo (3,261), Edo (2,626), Rivers (2,432), Kaduna (2,419), Ogun (1,850), Delta (1,802), Kano (1,737), Ondo (1,631), Enugu (1,289), Ebonyi (1,040), Kwara (1,036), Abia (895), Gombe (883). Katsina (861), Osun (839),  Borno (745), and Bauchi (699).

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Imo State has recorded 572 cases, Benue (481), Nasarawa (450), Bayelsa (399),  Jigawa (325), Ekiti (321), Akwa Ibom (288), Niger (259), Adamawa (248), Anambra (237), Sokoto (162), Taraba (102), Kebbi (93), Cross River (87), Zamfara (78), Yobe (76), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

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The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

 

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