NCC Pushes for Excise Duty Exemption for Telecoms in Nigeria
The Nigerian Communications Commission (NCC) is actively advocating for the complete removal of excise duty for telecom operators in Nigeria, arguing that their services are essential and not luxury items. This stance was articulated by Professor Umar Danbatta, the Executive Vice Chairman of the NCC, during the Telecom Executives and Regulators Forum (TERF) organized by the Association of Telecommunications Companies of Nigeria (ATCON). The NCC’s position reflects a growing concern about the financial burdens faced by telecom companies in the country and its potential impact on service delivery and affordability, especially in the African context where connectivity is crucial for development.
Industry Under Tax Strain: NCC’s Plea for Relief
Professor Danbatta applauded the recent suspension of the 5% excise duty on telecommunication services. However, he reiterated the need for a total exemption from such levies. He noted ongoing discussions with the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, to address the industry’s tax concerns and secure telecom’s exclusion from excise duties. This push for exemption is driven by the increasing tax burden on telecom operators. Danbatta highlighted that the number of taxes paid by operators had escalated significantly, rising from 41 last year to 46 by the second quarter of this year. This increase underscores the NCC’s commitment to supporting the growth and sustainability of the telecom sector in Nigeria, which plays a critical role in fostering economic development and digital inclusion across the nation.
In conclusion, the NCC’s stance reflects the sector’s struggles. The organization is committed to ensuring its continued growth to improve Nigeria’s digital landscape.
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