The
spate of inflation in Nigeria is about to be compounded in Nigeria with
telecom operators preparing for an increase in tariff on their
services.
File Photo
Telecommunication subscribers in the country may be in for a rough
year as the network operators are said to be considering another
increase of their tariffs soon in order to sustain services amidst a
tough operating environment.
Sources within the industry told Leadershio Weekend that the major
reason for the planned hike, according to the telecommunication
operators, was the increasing multiple taxation by governments at
different levels.
It would be recalled that the proposed new data tariff floor,
approved by the Nigerian Communications Commission (NCC), was suspended
last December, after a public outcry and intervention by the Senate.
In its reaction, the Association of Licensed Telecommunications
Operators of Nigeria (ALTON) has expressed its dissatisfaction with the
new development.
It made its position known in a statement by its chairman, Mr.
Gbenga Adebayor. This year, Nigerian telecom consumers may witness
increase in their voice, data and broadband services from the mobile
network operators.
Already, the planned introduction of a nine per cent Communications
Service Tax (CST) by the federal government through the National
Assembly to shore up 2017 budget revenues may be another trigger that
would lead to the hike.
Engr. Adebayo said, “The tax bill, if enacted, will bring
hardship to telecom subscribers. ALTON and some stakeholders, like the
GSMA, Consumer Advocacy Foundation of Nigeria (CAFN) and NATCOMS have
jointly spoken out that the bill is unacceptable to us.”
Meanwhile, the president, Association of Telecommunication
Companies of Nigeria (ATCON), Engr. Olusola Teniola, noted that telecom
companies do not object to tax reforms nor regard taxes as a burden.
“The truth is that there is severe over-taxation in our
industry. It explains the slow penetration of services into unserved
areas of the country.
“Contrary to popular belief, telecom operators and service
providers are barely sustaining existence in these times. We, therefore,
suggest that an increase in value added tax (VAT), which is already
included in all services of telecommunication by an increase that is not
beyond one per cent, should be a good reform strategy,” he said.
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