A new ICT tax being considered by the National Assembly would prevent over 50 million Nigerians from being able to afford a basic broadband connection. Analysis by the Alliance for Affordable Internet (A4AI)-Nigeria Coalition shows that the proposed 9% tax to be levied on consumers of communications services would result in an additional 10% of the population — equivalent to nearly 20 million Nigerians — being unable to afford a basic broadband plan.
The analysis suggests that the passage of such a tax is likely to threaten Nigeria’s ability to achieve its goal of 30% broadband penetration by 2018 and to undermine the socio-economic progress spurred by increased connectivity. The Communication Service Tax (CST) Bill 2015, currently in front of the National Assembly, would require consumers of voice, data, SMS, MMS and pay TV services to pay a 9% tax on the fees paid for the use of these services.
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