Multiple Taxes Cripple Telecom Growth, Warns NCC

The Nigerian Communications Commission (NCC) has described multiple taxation as an impediment to the development of the telecom industry as well as the overall national economy.

This was made know by the Executive Commissioner, Stakeholder Management of the NCC, Adewolu Adeleke, while delivering a keynote address on Wednesday in Kano at the Regional Stakeholders Workshop on Multiple Taxations and Regulation.

The Executive Commissioner was represented by Director Compliance Monitoring and Enforcement, Efosa Idehen at the one-day event with theme: “Navigating the Landscape of Multiple Taxation and Regulations, Fostering Sustainable Growth through Collaboration”.

He explained that the incidence of multiple taxation and regulations are impacting on the growth of telecoms infrastructure on which all other infrastructure making up digital economy depend.

However, he stated that this is not referring to legitimate taxes imposed by appropriate authorities following necessary due processes, but “the many irregular, often duplicated and sometimes hastily posed taxes and charges which some Agencies pursue for short-term revenue gains neglecting the greater long-term impacts of their actions on investor confidence, the socioeconomic wellbeing of our people and overall national economic growth.”

He made reference to some instances from states and local government agencies of such taxes and regulations imposed without appropriate legal backing, that affect the industry’s out put in general.

These multiple taxations and regulations imposed on infrastructure maintenance, environmental impact charges, waste collection charges in addition to value added tax and sales tax being paid simultaneously add to the cost of services enjoyed by the consumers.

Proffering solution to the problem of multiple taxation and regulations, the Commissioner called for the situation to be urgently addressed.

“I am therefore pleased to note that one of the most pivotal actions taken by President Bola Ahmad Tinubu, GCFR upon assuming office, was the establishment of Presidential Tax Reform Committee. We have presented our recommendations to the committee and we are confident that it will make necessary recommendations to conclusively address the various dimensions of the problem of MTR (Multiple Taxations and Regulation).

“In our view, prioritizing comprehensive tax reform will unlock the full potential of the Nigerian economy. These reforms should aim to simplify the tax system, eliminate redundancies, and promote transparency.

“Government at all levels must collaborate to create a harmonized tax structure that foster economic growth rather than stifling it” he explained.

The commissioner also warns that with the expectations of the Federal Government on the industry of achieving 90 percent increase in broadband penetration by 2027, 50 percent of Quality of Service by end of 2024, 15 percent increase in investment in the sector, 22 percent GDP contribution increase by 2027 and reducing the gap of communication to rural communities from 61 percent to 20 percent, would only be possible with speedy deployment of new infrastructure and the seamless operations of existing ones.

“To illustrate, the industry experienced over 35,000 fiber cuts in 2022 and over 24,000 fiber cuts so far in 2023. Similarly, over N14 billion has been spent on repairing damaged fiber.

“In the same vein there has been over 18,000 denial of access cases recorded in 2022 and over 6,000 cases so far in 2023.

“Statistics of this nature cannot encourage anyone to invest. So we all owe it a duty to tackle this menace once and for all” he declared.