Kano, Dec.17, 2023 – The Nigerian Communications Commission (NCC) says multiple taxes are hindering the achievement of many of the lofty goals in the telecom sector.
Adewolu Adeleke, the Executive Commissioner for Stakeholder Management at the NCC, said this at a Regional Workshop on Multiple Taxation and Regulations held in Kano.
He said multiple taxation had been an impediment to the development of the telecom industry as well as the overall national economy.
Adeleke described the multiple taxes as 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 said multiple taxation and regulation 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.
The NCC executive, who was represented by Efosa Idehen, the Director, Compliance Monitoring and Enforcement, said states and local government agencies were enforcing these taxes and regulations without any authorisation.
“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 socio-economic wellbeing of our people and overall national economic growth,” he said.
Adeleke said this unwarranted imposition had adversely impacted on the telecommunications industry, leading to ripple effects on its overall output.
He called for proactive measures to address the persistent challenges of multiple taxation and regulations not only to alleviate their burden, but also to pave the way for a more stable and conducive environment in the telecom sector.
“I am, therefore, pleased to note that one of the most pivotal actions taken by President Bola Tinubu, upon assuming office, was the establishment of the 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 multiple taxations and regulations.
“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 harmonised tax structure that fosters economic growth rather than stifling it,” he said. (GBN)
