The Federal Government of Nigeria has imposed a new tax law on outgoing and incoming telephone calls in the nation intending to gather enough monies to fund its planned Free Healthcare for the Vulnerable Groups policy. This is on top of the recent hike in prices made by telecommunications services in response to the unfavorable operating climate.
According to the new tax, a minimum of one kobo per second is to be charged for all phone calls and was part of a subsection included in the recently passed National Health Insurance Bill. Located in Section 26, subsection 1c stated that the source of funds for the free healthcare plan would be obtained through a telecommunications tax.
Explaining the rule, the Fiscal Policy Partner and Africa Tax Leader at PricewaterhouseCoopers, Mr. Taiwo Oyedele said that with an assumed call rate of around 11kobo per second it would mean the imposition of a 9% tax on all calls. It said that the tax was but one intended source of money for the Vulnerable Group Fund and such monies would be channeled towards payment of healthcare services for children under five, indigent persons, the mentally challenged, and pregnant women among others. According to the Act, by the time it is successfully implemented, every Nigerian would have obtained health insurance.
