Skip to main content

The Federal Government, Customs, Set For The Implementation Of Five Percent Tax On Telecoms

The five percent tax by the Federal Government on Telecoms has received a negative welcome. The telecom operators are kicking against it, describing it as insensitive, unfair, and capable of crippling the industry in the way and manner the oil industry has been crippled by different challenges. They rejected the tax.

According to them, the industry is already saddled with over 39 different taxes and the present one being proposed for implementation would only send the telecoms sector into a coma.

The industry stakeholders were represented by the Association of Telecommunications Companies in Nigeria (ATCON), Association of Licensed Telecommunications Operators in Nigeria (ALTON) and Nigeria Association of Telecommunications Subscribers (NATCOS) asked the government to suspend the implementation of the tax policy indefinitely.

But the Federal Ministry of Finance, Budget and National Planning and the Nigeria Customs Service (NCS), said they are going ahead with the policy implementation as only President Muhammadu Buhari has the power to suspend the implementation based on the schedule of the Act.

The government and telecoms industry representatives spoke at the Stakeholders Consultative Forum organised by the Nigerian Communications Commission (NCC), at the Digital Economy Complex, Mbora, Abuja.

Speaking on behalf of ALTON, its President Gbenga Adebayo said the Mobile Network Operators (MNOs) have taken holistic look at the 5 percent excise duty, but had no choice than to pass the burden of payment to the subscribers.

Adebayo further stated that besides Value Added Tax of 7.5 percent in the industry, there are 38 other taxes and levies being collected by states, local government and other agencies of government.

“Let me affirm our commitment to partner with the government on this issue and reiterate our resolve to ensure positive collaboration, however, it is important to let you know that telecoms operators in Nigeria will not subsidise this new tax, but pass it to the subscribers,” Adebayo stated.

The Executive Secretary of ATCON, Ajibola Olude, described the tax as unfair, harsh, unjust, opaque and indefensible.

He said the tax failed to comply with the known principles of taxation.

He said about 1000 ISP have been given licences for operations in the country but only 10 of them are active.

Olude said the telecoms industry is already bleeding to death like the oil industry, warning that the proposed tax if forced down the throats of operators would only cause closures of businesses and loss of jobs.

He pleaded that government should suspend the implementation of the tax regime forthwith, while alternative measures should be looked into to raise revenue for the administration.

President of Association of Subscribers, Adeolu Ogunbanjo, said subscribers are facing untold hardships currently given the economic outlook of the country and pleaded with the government to suspend the tax implementation.

But the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed said only President Muhammadu Buhari could suspend the implementation, stressing that the Act had already been passed by the National Assembly.

Ahmed, who was represented by Assistant Director in Charge of Tax Policy in the Ministry, Mal Musa Umar, said the stakeholders’ engagement was not meant to discuss stoppage of implementation, but modalities and the categories of service providers who are to pay.

Umar, who was assisted by Frank Osanipe, a senior tax officer in the Ministry to deliver the Minister’s presentation, said the implementation ought to have started in 2020, stressing that a further delay would mean loss of revenues to the government.

He argued that as long as citizens and organisations do not see reasons to comply with payments of taxes, so long would the government find it difficult to meet its obligations to the people.

Osanipe said the 5 percent tax covers telecoms operators, fix telephone, Internet service providers and all others licensed by the Nigerian Communications Commission.

He said government would further find ways to collect the 5 percent duty even from services rendered by international organisations as long as Nigerians are the consumers of the Services.

The Comptroller-General of Customs, Hameed Ali, represented by Assistant Comptroller-General, Lamin Wushishi said all operators are required by law to register with Customs to enable them assess duties chargeable and conclude mode and time of payment.

He said the law is not strange as been misconstrued, only that it was suspended since the time of NITEL.

“Let me be frank with you, the law has been there. And we expect your cooperation and compliance. Customs already have the data of all operators in the country.

‘’It is necessary you come, pick the forms and provide the necessary information. If you don’t come, we will be forced to ensure that you pay with penalty,” Wushishi said.

Source: The Nation

Comments

  1. The government and money

    ReplyDelete
  2. Oh Gosh! Not another increase in commodity and services!

    ReplyDelete

Post a Comment

Type your comments here

Popular posts from this blog

Na Wa!

Na Wa is a Nigerian Statement Which Means Beyond Words!  Wow! Men of the Nigerian Police - constabularies, captured/seen in a street protest!  In this viral video below. Police constabularies protest over non-payment of salaries. The men purportedly protest non payment of their salaries. Right in front of the Kwara State Government House. Brave move! The Government should please resolve the issues promptly. The police is your friend they are very instrumental to the protection of life and property through the enforcement of laws and regulations. An Update On The News Above; The Vanguard News reports that the Police Command in Kwara has dismissed the viral video circulating above, regarding a protest by some purported policemen over alleged non-payment of one year salary. The Commissioner of Police in the state, Tuesday Assayomo, said in a statement issued by the command Spokesman, SP Ajayi Okasanmi, on Saturday in Ilorin. Assayomo added that the police was not owing the salary of any c

Professor Isa Odidi, Lead Nigerians From The Diaspora, Calls On Atiku Abubakar To Fix Nigeria

On Tuesday, 22 March 2022, Nigerians from the diaspora in a clarion call for a 'FIX' Nigeria, called on His Excellency Atiku Abubakar to join the race for the candidacy for the President of Nigeria under the People's Democratic Party (PDP).                       Nigerians from Diaspora  They came out en mass to support the Atiku Abubakar Presidential bid. There was massive turn out of the crème de la crème. The Nigerians from the diaspora were led by Professor Isa Odidi, the erudite pharmacist, celebrated scientist, distinguished innovator, first-rate technocrat, tireless researcher and consummate entrepreneur. A cross-section of the Nigerians from Diaspora with his Excellency, Atiku Abubakar. They gave their unequivocal support to Atiku Abubakar, stating his wealth of experience in Politicking and his remarkable achievements over the years, especially his years as the Vice President of Nigeria.  They reiterated that his tenor in office as Vice President, with the former Pr

Breaking-Former President Barack Obama Tests Positive For COVID-19

Former President Barack Obama has tested positive for Covid-19, according to a tweet from his official account.  Former president ‘had a scratchy throat but fine otherwise’Michelle Obama negative and both are boosted, tweet says. "I just tested positive for Covid,” the former president, 60, said in a tweet on Sunday. “I’ve had a scratchy throat for a couple days, but am feeling fine otherwise. Michelle and I are grateful to be vaccinated and boosted, and she has tested negative. It’s a reminder to get vaccinated if you haven’t already, even as cases go down.”