Telecommunications industry worried over multiple taxation
By Patience Ikpeme
In spite of progress made, the communications industry is worried that there is still a significant cases of multiple taxation faced by operators.
Some of the challenges confronting the communications industry include: arbitrary charges for Right of Way (RoW), hidden taxes, and unauthorized regulatory interference in the communications sector.
The Executive Commissioner, Stakeholder Management at the Nigerian Communications Commission (NCC), Adeleke Adewolu, stated this while addressing stakeholders at the combined second and third quarters 2023 meeting of the Industry Working Groups (IWG) on multiple taxation and regulations in the telecoms sector in Ibadan, Oyo state
According to the Executive Commissioner “there remains a lot of work to be done as the industry was still beguiled by arbitrary Right of Way (RoW) charges, hidden nuisance taxes and unauthorised regulatory encroachment into the communications industry”.
He said the Commission has continued to work assiduously to ensure harmonisation of RoW charges across the country.
In addition, several existing agencies like the Federal Inland Revenue Service (FIRS) and the Nigerian Maritime Administration and Safety Agency (NIMASA) have been collaborating like the with the NCC in line with the National Economic Council (NEC) resolution of 2012 .
“We are also working with the Nigerian Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA), all in a bid to ensure the regulatory actions taken by the agencies are well synchronised with the regulatory objectives of the Commission, in a manner that boosts market development and industry sustainability,” he said.
Adeleke Adewolu tasked telecom licensees to continue to bring burning issues on multiple taxation and regulation to the attention of the Commission as they experience in their daily operation.
He also assured them of NCC’s decision to always make necessary regulatory intervention to boost industry growth.
“The Commission is always inclined to executing the requisite reform that will strengthen the Communications Sector and deepen market development,” he said, as he urged all stakeholders at the IWG meeting to deliberate frankly and productively in highlighting pressing and key issues that require urgent attention.
Adewolu said the IWG’s activities are geared towards ensuring fair tax policies and eliminating every incident of multiple taxation and regulations impacting the Nigerian telecommunications industry.
He stated that a lot of milestones have been recorded by the industry since the establishment of the IWG over two decades ago, as the platform has proven to be effective in articulating industry concerns in this area and also proffering solutions to these issues.
“Considerable industry gains have been recorded lately, particularly as it relates to the issue of multiple taxation. For instance, His Excellency, President Bola Ahmed Tinubu recently signed Four Executive Orders designed to curb multiple taxation in the Country.
“Key amongst them is the Executive Order for the suspension of the five per cent Excise Duty on telecommunication services as well as Excise Duties escalation on other locally manufactured products,” he said.
He described the gains as laudable as, according to him, they continue to serve as inspiring landmarks for the industry, underscoring what can be achieved when the entire industry come together harmoniously to speak with one voice on existential concerns undermining the economic health of the communications industry.
