" ITREALMS: Multiple taxation negates economic growth - NCC

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Wednesday, March 28, 2012

Multiple taxation negates economic growth - NCC


The Nigerian Communications Commission (NCC) has said that multiple-taxation negates the rate of any economic growth.

The Executive Commissioner of Stakeholder Management of the Nigerian Communications Commission, Mr. Okechukwu Itanyi, made this observation at a one-day stakeholders meeting to discuss issues on multiple taxation, levelly severally against telecom operators in the country.

In his address, Itanyi noted that multiple taxes levied against the telecom operators in the industry are not providing an enabling environment towards the nation’s economy growth.

Itanyi, who also is the chairman of the Industry Working Group on Multiple Taxation, a group inaugurated on January 19, 2012 whose members comprised of members from the regulatory agency, and representatives from all telecom operators as well as stakeholders including the media, maintained that telephone access in the country has not only been a social status symbol but an essential communication and business tool owned by both the poor and the rich alike.

According to him, despite the significance of telecommunications to the nation’s economy, agencies of state and local governments see the industry as a means of exploit.

He cited some examples of the various taxes and levies by some state, local governments and their agents with some cases where a particular telecom operator was levied for a particular item by two agents of a particular given state government.

This approach, he said, is a serious case which is working towards the extinction of telecom operators as such taxes could get them out of business and in turn lead to congestion of another telecom operator and increase in the rate of unemployment in the country.

He described multiple taxations as a wound on the part of the telecom operators as operators are being levied hugely per base station by various agents of states and local governments and their agents.

A member of the working group, Mr. Tobe Akigbo representing the Association of Licensed Telecommunications Operators of Nigeria (ALTON) pointed out that in some cases base stations were being shut by government agents which in turn led to network pack-up in that particular part of the country.

 

Akigbo also said the telecom operators are faced with two forces from the regulatory agency and the telecom end-users where the operators would have to give reasons for the breakdown of service as a result of base station shut.


Remmy Nweke
ITREALMS Online ... delivering news for ICT4D Short URLs: goo.gl, mcaf.ee, cli.gs

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