NUPTE Says Proposed Communication Tax Amounts to Double Taxation

Sunday Alhassan, President, National Union of Postal and Telecommunication (NUPTE), yesterday said the proposed Communication Service Tax (CST) would amount to double taxation.

Alhassan told newsmen in Lagos that the bill was anti-workers and if allowed to sail through, would lead to loss of jobs.

It would be recalled that Mr Adebayo Shittu, minister of Communication, had proposed the imposition of Communication Service Tax (CST). The bill, if passed into law, means that nine per cent tax would be charged on all phone calls, SMS, MMS and data package.

Alhassan said that workers were against the passage of the bill because labour was not invited for the public hearing on it and did not make any contribution.

“The proposed bill will lead to drop in calls which will affect the revenue of communication companies. “If the tax on calls is increased, workers can lose their jobs due to drops in money generated by the companies,’’ Alhassan said.

He said that it would be unfair to allow the people to pay such tax when workers in a country were still earning N18,000 national minimum wage. The unionist said that the bill was not realistic now because workers’ take-home pay could no longer take them home.