New Rates On Advert and Promo Does Not Amount To Double Taxation-NCC

The Nigerian Communications Commission (NCC) says payments of new adverts and promo rates by Mobile Network Operators to the Commission will not amount to double taxation.

This comes as Mobile Network Operators claim that payments of adverts and promo fees to the Nigerian Communications Commission (NCC), will amount to double taxation since MNOs pay to the Nigerian Lottery Commission (NLC) and the Advertising Practitioners Council of Nigeria (APCON).

The Executive Commissioner Stakeholders Management, of the NCC,Mr. Adeleke Adeolu disclosed this in Abuja, while responding to questions at the end of the three day public inquiry organised by the NCC .

He explained that the new rates for advertisments and promos are to meet current realities and protect the consumers.

Adeolu said APCON and NLC are regulators of advertisments lotteries while the NCC is the regulator of the telcom industry where they operate.

In his response to the claim of the MNO’s on double taxation, He said,

“I think multiple taxation is a strong word to use there. It is not in the form of a tax. These are fees for the administration of an application process whereby licencees have to apply to us.

“This is in the interest of consumers to ensure that where advertisements or promotions are being run on telecommunication platforms, they are done with responsibility, with existing laws and to ensure that the interest of consumers are protected.

“If you look at the rates for advertisements and promotions, these rates were set many years ago. They do not reflect the reality of todays time and what we are already doing is bringing them in line with current trends in the country and industry.

“The NCC on the other hand has the clear mandate to protect consumers in running advertisements on promo on telecommunications networks. The two acts are very clear and I wouldn’t think that this amounts to multiple taxation in any way,” he added .

A representative of 9mobile Ikenna Ikoku, who spoke virtually, had earlier claimed that the payment of fees on advertisments and promos will amount to double taxation. “We pay to APCON and lottery commission paying to NCC again will result to multiple taxation. The NCC should only charge processing fees.”

Also , A representative of Airtel, Ade Gbolahan said the commission should leave the fees at the old rate of 350.

“The proposed fees should be left at 350 as it it. This is another fees that the industry is not pleased with. We would want the commission to suspend the increase for the time been.”

Also, a representative of IHS Nigeria Limited, Mr. Damian Ude, aligned with Ikoku submissions said that the commission for a downward review of the 10meters requirement to 5meters for deployment of Communication Infrastructure in Nigeria especially in congested areas of the country .

The Commission disclosed that 7 working days has been given to other stakeholders in telecommunications industry to send their comments and contributions to ensure a holistic and rebourst review to meet international best practices and the current economic realities as well as emerging technological development.

The three day public enquiry was a review of five guidelines which include Type Approval Regulation ,Short Code Operation in Nigeria, Technical Specifications for the Deployment of Communications Infrastructure, Advertisements and Promotions, as well as Consumer Code of Practice Regulations.

Hauwa Abu