The Nigerian telecommunication regulatory authority (NCC), Thursday in Lagos inaugurated an industry working group, (IWG) on multiple taxation in the telecoms industry by various agencies of the government.
The IWG which was drawn from the regulatory agency, operators and the subscribers has the mandate to articulate the position on dangers of multiple taxation and engage relevant levels of government with the aim of stopping the imposition of illegal taxes/levies on the telecoms operators in view of the grave socio-economc implications.
The Executive Commissioner of the Commission, Mr Okey Itanyi, in his keynote address during the inaugural ceremony said that IWG would act in an advisory capacity and make appropriate recommendations on all matters relating to levies, taxes for site build-out in all parts of the country.
Terms of reference of the group, according to him, are but not limited to the following; to review recent cases of multiple taxations suffered by operators within the telecoms industry; enlist the support of all stakeholders, articulate the industry position on the dangers of multiple taxation on the nascent industry and ensure wide publicity of same; and develop the strategies for addressing and managing the threat posed by multiple taxation to the growth of the telecoms industry
Others include: to form a strong lobby group to meet various arms of government to press home (sensitize) the dangers of multiple taxations to the nascent industry; to liaise with Federal Inland Revenue Service and JTB to ensure a fair; and equitable tax/levies for operators within the industry; and to identify various economic palliatives necessary to improve Quality of Service, National Security, ICT penetration and present same to the policy makers within the government.
Itanyi said telecoms industry in the last few months has witnessed cases of forceful closure of base stations ( BST) in various parts of the country by agents of states and local governments albeit for reasons bordering on non-payment of spurious levies and taxes.
“As a regulator, NCC is alarmed that these glaring cases of multiple taxation, when added to the current socio-economic realities in the country portend grave danger to operator’s expansion plans in addition to the quality of service in the country. The problem if not quickly addressed , could even erode all the gains of the past 10 years in this country.
“And the rate at which various state governments are jumping at this illegality as a strategy to shore up their internally generated revenue compels the Commission and all stakeholders to take urgent steps to stem this growing menace within the industry before it becomes a national epidemic” he said.