The
Association of Licensed Telecoms Operators of Nigeria (ALTON) has responded to
the recent comments attributed to the Honourable Minister of Communication,
Barr. Adebayo Shittu in Osogbo, Osun State, alleging that the proposed tax
would help to improve telecommunication infrastructure in the country, reports
ITRealms.
ALTON
in response said that it amounts to double taxation and impracticable due to
avalanche of flaws in the proposed bill.
Shittu,
ITRealms gathered was also quoted as saying that “We have a lot of deficiency
in the provision of infrastructure in the telecommunication sector. “And I
believe that those who proposed the bill must have thought that government
centrally relies on tax because without tax, government cannot operate.”
ALTON,
ITRealms reports, is a body corporate, duly registered under the laws of
Federal Republic of Nigeria as an Incorporated Trustee, and officially
recognized by the Government of the Federal Republic of Nigeria and the
Nigerian Communications Commission as the official industry body for all
licensed providers of telecommunications and subsidiary services in Nigeria.
Responding
to Shittu remarks, ALTON, took to its ground that any attempt to uphold the
Communication Service Tax (CST) would amount to double taxation.
ALTON
chairman, Engr. Gbenga Adebayo, in its submission after a review of the
proposed bill submitted that the introduction and collection of the Tax without
the exclusion of the applicability of the Value Added Tax (“VAT”) which was
introduced by the Value Added Tax Act and is also applicable to services
rendered by Service Providers in the telecommunication sector will amount to
double taxation as the proposed Tax is an additional tax on communication
services rendered to the same end users who already pay a five percent (5 per
cent) tax as VAT.
“Also
the administration of this tax regime as proposed will be cumbersome and
impractical. We must correct this general notion that service providers can
absolve any tax without considering the capital and operational cost to the
service providers,” ALTON leadership declared.
The
group also underlined some affordability challenges in connecting the
unconnected, adverse impact on telecom infrastructural development, as well as
its impact on the national broadband plan.
According
to ALTON, the broadband penetration remains low at less than 10 per cent, with
the government setting a target of 30 percent by 2018, which is now being
hindered by the debates on CST and its proposal.
“High
consumer taxes on communication services would Impact negatively on economic
and broadband development,” ALTON maintained.
Nenye Dom/GEE
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