The
Association of Telecommunications Companies of Nigeria (ATCON) has called on
those propagating the proposed Communications Service Tax (CST) bill to step it
down, reports ITRealms.
The
National President of ATCON, Mr. Olusola Teniola, made this call at the stakeholders
forum on CST hosted by the Lagos Chambers of Commerce and Industry (LCCI) in
Lagos on Wednesday, warning of ‘Chronic Recession.’
ATCON,
he said believes any action that has the potential to derail the telecoms
industry should be avoided by all tiers of government in Nigeria as the
benefits of imposing a Communication Service Tax on telecoms subscribers are
far lower than the revenue that it is going to create for the government.
ATCON
insist that the proposed Communications Service Tax bill should be stepped
down, arguing that doing otherwise, will speed-up the nation into ‘Chronic Recession.’
The high taxation, ATCON said, takes so much
away from both the telecoms operators and subscribers that little or nothing is
left to run the business.
The group also advised the Federal Government
and any government tiers to boost the economy with increased government
spending, outside which will result in stagflation thereby causing simultaneous
high inflation and unemployment instead of prosperity.
Further, ATCON described the CST as lack of
innovation, because the operators in the sectors are already faced with
multiplicity of taxation, thus the group considers the proposed Communications
Services Tax bill unnecessary and prohibitive.
“Imposition of Communications Services Tax
bill could stifle innovation and creativity in the sector and this would
automatically reverse the gains already made in the past decade,” ATCON
president said, stressing that this might lead to increase in unemployment,
decrease in revenue accruable to government which would heighten the county’s
poverty level.
Chuks Egbune/GEE
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