Nigerian Communications Commission (NCC) is urging states and local government areas across the country to cut taxes imposed on telecom companies, stressing that excessive taxation will hinder the growth of the industry.
NCC Executive Vice Chairman, Dr. Aminu Maida, who made the remarks on Tuesday at the Digital Economy Complex, Mbora, Abuja, noted that with between 50 to 55 per cent taxes already imposed on telecom operators, it would be difficult to attract foreign investments into the sector in line with President Bola Tinubu’s directive to the commission.
He said the NCC management embarked on a nationwide advocacy to appeal to state and local governments as well as other stakeholders on the need to reduce levies they imposed, especially the Right of Way charges and other multiple taxes.
The Federal Government, in its 2024-2026 Medium-Term Expenditure Framework and Fiscal Strategy Paper, said it would implement a five per cent excise duty on telecommunication services to boost its revenue base.
“We are going to be going on an advocacy campaign to see how we can convince the states to remove some of these obstacles like Right of Way, and multiple taxations because I have seen some studies which indicate taxation is almost 50 per cent getting to 55 per cent in some areas in this country.
“You would agree with me that if we are trying to bring in foreign investment, that is not a good picture to paint,” he observed.
He appealed to states to consider the long-term benefits that would come to them if they allowed massive investments in the sector as job opportunities would be created alongside other value chains in the sector.
- By Deji Ariyo with Agency reports