Fidelity bank card banner Camano banner
ATCON, ALTON, others call for Executive Order to stem multiple taxes

By News Express on 06/06/2019

Views: 1,075

Major stakeholders in the telecommunications sector in Nigeria, led by the Association of Telecommunications Companies of Nigeria (ATCON) and Association of Licensed Telecoms Operators of Nigeria (ALTON) in agreement, have called for a downward review of the 2.5% Annual operating Levy (AoL) charged by the Federal Government through the Nigerian Communications Commission (NCC). 

They said that it should be slashed to 1.5%. 

The current heavy taxes imposed on telecoms companies at the Federal, state and local government levels, have been a major obstacle, which retards economic growth, limits profits, compromises quality of service, and slows network expansion. 

In addition to the statutory taxes levied on operators, telecommunications operators pay Annual Operating Levy (AOL) of certain percentage of earnings to the Nigerian Communications Commission (NCC), and are required in addition to pay various rates and charges to other Federal Government agencies (e.g., Consumer Protection Council, Nigeria Lottery Commission, Federal and state ministries of environment etc), authorities in every state and local government in which they operate.

Also, the Police and thugs, who support the drive of the multiple tax imposers, make it difficult to resist them.

Industry stakeholders recently picked holes in the nation’s tax structure, saying the ugly menace of multiple taxation has to be removed to attract more investors into the nation’s telecoms industry.

Speaking at a stakeholders’ forum the National President of Association of Telecommunications Companies of Nigeria, Engr. Olusola Teniola, averred that a downward review of the levy has become imperative, especially in the face of dwindling revenue and tough business climate in the country.

The AoL is a 2.5 per cent charged by the NCC on the yearly revenue of both network and non-network providers in the country. He said service providers are seriously groaning under several questionable taxes imposed by states and their agency on players in the industry.

Teniola who also called for the hamonisation of the various forms of taxes in the sector, appealed to NCC to consider their calls for AoL downward review.

He noted that a one-stop-shop for collection of taxes would do the sector and indeed Nigeria good, especially in the quest for more Foreign Direct Investments (FDIs).

He also decried that states and their agencies see service providers as ‘cash cows’ that they can easily latch on to and get some quick funds.

In agreement with the National President, Ms Funke Opeke, Chief Executive Officer, MainOne, Funke Opeke, said it had become really difficult for operators to expand, especially to unserved areas because of the volatility of the environment, and the mentality paraded by handlers of those states, who have formed the habits of imposing taxes on service providers.

Opeke noted that the last time a major investment came into the telecoms sector was in 2010, adding that investors are seriously dying under multiple taxes, which are mostly imposed on operators by states and their agents.

She urged NCC to come up with a new approach in meeting with states government on the dangers multiple taxes and over regulation have brought on the sector.

On his part, Engr. Gbenga Adebayo, Chairman of ALTON, also called for a downward review of the levy, saying this has become necessary going by the increasing usage of Over-The-Top (OTT) services by telecommunications customers, which according to him, is adversely impacting on operators’ revenue.

Adebayo, while noting that telecoms operators are confronted with 39 different taxes that have become great hindrance to further expansion of services in Nigeria, harped on the need for the Nigerian Communications Commission NCC to be more strategic to do something different. This, he said, is because the multiple taxes and arbitrary closure of telecom sites always affected the quality of service, which in turn impact on other sectors.

Underscoring the need for this levy reduction, Adebayo explained: “For example, let me say you sell N1 million, then you remove your expenses, you remove your tax, and then you take your profit from it.

“What NCC does is to take the entire turnover, that is, all income before tax and before expenses, then take 2.5 per cent on it, which in itself is not a fair approach. This is because for you to achieve this N1 million, you would have spent certain money.

So, I feel you should actually take out your expenses before they apply the 2.5 per cent. So, what it then means is that the 2.5 per cent is actually additional expenses on the operators.

“It is high, because it is 2.5 per cent of yearly turnover, not 2.5 per cent of profits. They need to consider a downward review.”

They called for an Executive Order (EO) to stem incessant multiple taxes imposed on their operations.

They unanimously agreed that the ongoing negotiations between telecoms operators, telecoms regulator and state governors were not yielding results as the state governors were bent at milking telecoms operators, through multiple taxation.




Source News Express

Posted 06/06/2019





You may also like...
Tony One Week weeps •Says Africa now a...

TOP 10 Nigerian songs

Beauty queen separates from husband

Barao banza!

3-day-old baby stolen in Plateau hospital

All Lagos sisi wan be my First Lady...

Revealed: The 3 passions of Ibinabo Fiberesima

My failed marriage has left me scared and...

K-Cee takes over Enugu today

Osuofia speaks from London

Flavour, Adekunle Gold explode in ‘Yo Yo’

Rap mogul Drake declares Wizkid’s song his favourite...


NLNG Job Vacancy

CBN banner advert

UBA Wise Savers Promo


ICT Monitor
Latest News Vodacom concludes 2019 Annual Inter-School Robotics Training Workshop ATCON, ALTON, others call for Executive Order to stem multiple taxes NCAA shelves destruction of over 7,000 telecom masts National Broadband Conference rescheduled Huawei: US blacklist will harm billions of consumers Switch launches App that eliminates transaction fee on transfer NCC, internet groups synergise to enhance Internet Governance in Africa Nigerian team excels in China global ICT competition ATCON’s 5th Telecom Executives, Regulators Forum holds July 11, 2019 Airtel wins award for contributions to economy, job creation NSE clears MTN for listing in Nigeria Partnership will deepen financial inclusion across Africa — Visa, Palmpay


Most Read Panic in White House after man sets himself on fire (1,540 views) ATCON holds symposium on post-Nigeria National Broadband Plan (1,429 views) Adopt technologies in future elections, ATCON urges FG (1,401 views) Why hackers target financial data of banks — Expert (1,382 views) Glo signs deal with Nokia Alcatel-Lucent •Bella Disu, Patrick Pouyanné, Aliko Dangote, 147 Global CEOs attend Choose France Summit at Château de Versailles (1,341 views) NCC commends Airtel; says broadband penetration now 33% (1,273 views) Airtel Nigeria launches 0901 number range (1,209 views) Neglect of internet speed leaves Nigeria at 107th position (1,176 views) Huawei: US blacklist will harm billions of consumers (1,175 views) Airtel Touching Lives invites nomination of beneficiaries for fifth edition (1,173 views) Axiom Tech launches Petro-App (1,165 views) Switch launches App that eliminates transaction fee on transfer (1,162 views)


Africa Media Agency and Al Jazeera