Association of Telecommunications Companies of Nigeria (ATCON), on Tuesday, commended Federal Government for suspending the five per cent excise duty charge on telecom facilities.
The Executive Secretary of ATCON, Ajibola Olude, gave the commendation in an interview with the News Agency of Nigeria in Abuja.
He said investors would be willing to put more money into the industry.
Mr Olude said:
For me it is a good development and the Minister should be commended. It is a temporal measure. We hope that it stayed suspended.
With the announcement, telecommunications operators will have to go back to the status quo.
The implication is that Investors will be willing to put more money into the industry.
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The Chairman, Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, said the government’s decision showed its commitment to operators, consumers’ concerns and broadband penetration.
Mr Adebayo said:
We are pleased about it, it showed that government is committed to broadband penetration.
What it will do, it showed to the investors that the government is sensitive to the concerns of consumers of telecom services.
And this had further boosted investors’ and consumers’ confidence on the government and policymakers.
It is a first step in the right direction.
The Minister, while speaking on how he presented the case to the president on the possible effect of the excise duty on the sector, said:
Of recent it was announced that some of our respected brother and sister (government officials), kick started the process of introducing excise duty in the telecom sector in which there and then, based on the constitution and being the representative of president Buhari in the sector. I rejected that whole heartedly being the representative of the president.
I formalised my position and explained to him in a letter that could be referred to as a petition, (reasons; excise duty is usually fixed on luxury products.
I told the president (in the letter) that if care is taken that attempt will destroy the digital economy sector that is becoming the backbone of our economy.
On why he kicked against the excise duty, the minister said:
Despite our achievements we have been recording some challenges in the sector and if care is not taken these challenges could be a barrier in the development of the sector in the next few years to come.
One of them; excessive taxes and sometimes multiple taxation. As it is today in the tax category of ICT sector (39) which is very worrisome. But as of today, the ICT sector is over burdened by so many categories of taxes to the extent that today there are 41 categories of taxes at the federal and state level, particularly in the telecom sector. Some at federal level and some at state level.
Beside these taxes are multiple taxes (the same taxes being collected at the federal is also what the states are insisting be paid to them. If care is not taken this is what will jeopardize the achievements and gains that we have recorded so far in the sector.
