Telcos In Distress Over Multiple Taxes In Nigeria

22 November 2019


The Association of Licensed Telecoms Companies of Nigeria (ALTON) has urged Nigeria’s federal government to address the issue of multiple taxes which it has previously described as ‘irrelevant’ and ‘stifles economic growth’.

The group claimed that the government had made a habit of imposing taxes that bear no relevance to telecoms operations such as Sewage tax, Parking tax, PAYE tax, Effluent Discharge tax, Social Service levy Right of Way tax, and Environmental/Ecological tax, among many others.

Gbenga Adebayo, the Chairman of ALTON, in an interview, expressed that the development had been a recurring concern that now requires an Executive Order.

Over-taxation has many consequences which include limiting Nigeria’s economic growth due to the negative impact it has on telecoms operators’ expansion drive, industry investment and advancement.

Adebayo said that the multiple-taxing limits mobile penetration and digital inclusion. He added that because some of the taxes are passed on to consumers, the cycle continues and revenue targets are not met.

He called for an urgent review of Nigeria’s fiscal priorities in preparation for the population explosion that is set to occur over the next two decades.

Source: Nigerian Communications Week