The bill reads in part:
“The tax shall be levied on Electronic Communication Services supplied by Service Providers. For the purpose of this clause, the supply of any form of recharges shall be considered as a charge for usage of Electronic Communication Service.”Extract from Bill for an Act to establish the Communication Service Tax
The Minister of Finance earlier clarified after the FEC meeting that increasing VAT was important because it would equip the State Governments with financial aid to pay the minimum wage. According to Ahmed, the FG would only retain 15% of the VAT, while 85% would go to the states and local governments.
However, Ndume believes that increasing the Communication Service Tax is a better way of distributing wealth and lessening the burden on low income earners.