The federal government has introduced a new telecommunications tax to provide finance to subsidise the cost of provision of health care services to vulnerable persons in Nigeria.<\/p>\n
This is contained in the National Health Insurance Authority Bill 2021 signed into law by\u00a0President Muhammadu Buhari on May 19.<\/p>\n
Section 26(1c) of the act states that the source of money for the Vulnerable Group Fund includes \u201ctelecommunications tax, not less than one kobo per second of GSM calls\u201d.<\/p>\n
The law defines the vulnerable group as children under five, pregnant women, the aged, physically and mentally challenged persons, and the indigent \u201cas may be defined from time to time\u201d.<\/p>\n
It specified that the money from the vulnerable group fund shall be expended to provide subsidy for health insurance coverage of vulnerable persons<\/a> as determined by the council; and for the payment of health insurance premiums for the indigent.<\/p>\n Thus, to fund it, the law provides several options such as basic health care provision fund to the authority; health insurance levy; telecommunications tax, not less than one kobo per second of GSM calls; money that may be allocated to the Vulnerable Group Fund by the government; motley that accrues to the Vulnerable Group Fund from investments made by the council: and grants, donations, gifts, and any other voluntary contributions made to the Vulnerable Group Fund.<\/p>\n The National Health Insurance Authority Act further mandated all persons resident in Nigeria to obtain health insurance.<\/p>\n Speaking on the development via his Twitter handle, Taiwo Oyedele, fiscal policy partner and Africa tax leader at PwC, said the new telcommuncations tax is equivalent to a 9 percent tax on GSM calls since call rates are charged at 11 kobo per second.<\/p>\n \u201cS.26 of this new law imposes a telecommunications tax of not less than 1kobo per second on GSM calls. With call rates at about 11kobo per second, this translates to a 9% tax on GSM calls,\u201d his tweet reads in part.<\/p>\n S.26 of this new law imposes a telecommunications tax of not less than 1kobo per second on GSM calls. With call rates at about 11kobo per second, this translates to a 9% tax on GSM calls. https:\/\/t.co\/AKTDqnx4Tm<\/a><\/p>\n — Taiwo Oyedele (@taiwoyedele) May 21, 2022<\/a><\/p><\/blockquote>\n\n