Telecom Companies Association Urges Government to End Multiple Taxation
Gloria Essien, Abuja
The Association of Telecommunication Companies of Nigeria (ATCON), has urged the government to address the issue of double taxation in the telecoms sector.
The president of the association Mr Tony Emekpe, made the call when he led the executive members of the association on a courtesy visit to the House of Representatives Committee on Telecommunication.
He said that the industry is regulated by multiple regulators that usually led to multiple taxation.
These taxes he said, impact negatively on their business and money earmarked for network expansion.
“As technology advance, you need to continuously expand and upgrade your network, hence the complex needs of the telecom industry is never ceasing. We keep on investing and investing.
“When you invest certain amount of funds in the sector, even within that community, there is increase in business and more IGR is generated.
But if you stifled our ability to invest our end profits by taxation, you are actually impeding our ability even to increase IGR in this situation,” he said.
Mr Emekpe urged the committee to drive a strategic agreement with the Central Bank of Nigeria CBN, on behalf of the sector, to bridge the infrastructure funding gap by providing accessible low-cost intervention funds for rapid development of mobile infrastructure nationwide.
According to him, there is the need to have a marginal increase in tariffs, as according to him, telecom operators in Nigeria are operating on old tariffs.
The Chairman of the house committee on Telecommunication Mr Peter Akpatason, said the committee would set-up a subcommittee to work together with the executives of the association to identify the challenges facing the sector, especially the local content issue.
“Our committee recognises the vital role that ATCON as the umbrella body of all telecom service providers plays in the development of the telecom sector, contributing about 18% to the nation’s GDP.
We firmly believe in the power of collaboration and synergy between the legislature and the private sector to drive growth, innovation, and prosperity.
“In this spirit, we seek to further deepen our working relationship, ensuring that your concerns, insights, and expertise are duly considered in our lawmaking processes and oversight of your Regulator – the Nigerian Communications Commission (NCC).
“I want to assure the Association that this Committee stands ready to provide necessary parliamentary intervention and support when the need arises. Your issues and challenges will be heard, and we will work tirelessly to find effective solutions that benefit both the industry and the citizens of Nigeria,”. Hon Akpatason said.
He noted that in line with the committee’s vision to strengthen and sustain relationship with the regulators and all critical Stakeholders, it will organise a Legislative – Regulator – Stakeholders’ Forum to get acquainted and to enhance the committee’s understanding of the challenges, goals, and aspirations as well as gain valuable insights of the telecommunications sector in Nigeria.
Hon Akpatason added that the colloquium would come up before the end of this year, which would be broader in perspective to put heads together and bring in experts on topical issues affecting the telecom sector.
