The Nigerian Communications Commission (NCC) has described multiple taxation against telecoms operators as anti-broadband development.
Speaking at the 21st Anniversary of the Association of Telecommunications Companies of Nigeria (ATCON) held last night in Lagos, Prof. Umar Garba Danbatta, acting Executive chairman of the NCC represented by Mr. Tony Ojobo, the director, Public Affairs, said that the case of “pre-investment” taxation of the operators as against tax-after-profit must be discouraged, especially at the State level.
According to him, multiple taxation is one of the inhibitions against fast deployment of broadband services in Nigeria, especially incessant and multiple taxes and their enforcement by government officials.
Ojobo said that overtime, the Nigeria telecoms industry has contributed immensely to the nation’s gross domestic product (GDP), and has opened various sectors to greater opportunities.
“If we look at the way the telecom industry is taxed today, there is need to move away from taxing them only at the end of the investment. I am happy that the representatives of the Imo and Lagos State Governments are here, because NCC has been on the forefront clamouring for States to review the issue of right of way for broadband infrastructure be deployed for the use of the people.
He lamented that unfriendly tax models are usually disincentive to investment and create anxiety among investors.
He also said that Nigerians must know that low quality of service witnessed in the at times, was basically for lack of completeness in infrastructure, hence urgent need for deliberate measure to address the quagmires.
“We need not to emphasis the impact of broadband penetration on the economy. Today, the likes of Jumia, Konga and of late Yudala are making impact on the economy. E-Commerce is trending, thanks to broadband penetration. Even at 10% penetration we are making progress; just few areas we need to address to bring about greater development,” he said.
He added that the Commission has perfected plans to allocate more frequently spectrum through licensing by 2016, which will open up the system for more infrasturtural deployment and growth.
The Director, Public Relations further extolled ATCON leadership for the persistent attitude at the evolution of telecoms in Nigeria.
According to him, the leaders’ quest for in a better industry must be vigorously pursued but in line with the ethical standards of the industry. Agency report
