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FG Imposes New Tax On Phone Calls

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The Federal Government has introduced a new tax on phone calls to fund free healthcare for the most vulnerable groups in Nigeria.

The telecom tax is the equivalent of a minimum of one kobo per second for phone calls to boost the funds required to finance free healthcare for the vulnerable groups in Nigeria.

This is contained in the National Health Insurance Authority Bill 2021, signed into law by President Muhammadu Buhari on May 19, 2022.

The law defines the vulnerable group as children under five, pregnant women, the aged, physically and mentally challenged people, and the indigent “as may be defined from time to time”.

New Tax

It stated that the money from the vulnerable group fund would be used to provide a subsidy for vulnerable people’s health insurance coverage as determined by the council, as well as to pay indigent people’s health insurance premiums.

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Subscribers Groan As FG Imposes N90.49bn Tāx On Phone Calls

Taiwo Oyedele, fiscal policy partner and Africa tax leader at PwC, stated on Twitter that the new telecommunications tax is equivalent to a 9% Tāx on GSM calls because call rates are charged at 11 kobo per second.

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