Business Briefs
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THE Association of Licensed Telecoms Operators of Nigeria, ALTON, have expressed concern over the amended Taxes and Levies Act 2015, recently approved by the federal government for collection among states and local governments. The amended Act, which was signed by Ngozi Okonjo-Iweala, former minister of finance, and gazetted as official document under the Federal Republic of Nigeria, on May 26, clearly stated the amended law on harmonisation of taxes and levies in states and local governments, without fixing any particular rate.
ALTON has expressed fears that since the taxable rate was not fixed, it would give room for states and local government authorities, to arbitrary increase levies and taxes. ALTON had been at loggerheads with all state governments, over what it described as indiscriminate imposition of taxes and levies across states, which it said, was affecting the growth of telecoms industry in the country.
Gbolahan Awonuga, executive secretary, ALTON, raised the concern over the potentially troublesome aspect of the Act, said apart from recognising and approving, it does not fix the taxable rates, hence the relevant tier of government is at liberty to arbitrary fix or increase the rates if it chooses. “The most disturbing aspect of the entire instrument is that instead of addressing the issue of multiple taxes, it effectively increased the tax burdens of individuals and businesses in Nigeria. Interestingly, the minister who signed the instrument is no longer in power to entertain stakeholders’ concerns.”
He explained that the danger of multiple taxation regime runs contrary to the desirable robust economy and investment friendly regime that the government of the day preaches. “Hence, stakeholders’ concerns must be voiced and drummed at every given opportunity; in symposia, through the media, through the Chambers of Commerce, keynote addresses, and even press statements. The Presidency must be made aware of the misnomer of enacting an anti-people instrument. We will need to partner with relevant stakeholders and right group to ensure a tidy tax regime is evolved for the benefit of all and sundry.
“It is worrisome that item 3(b) of the amended Schedule to the Taxes and Levies (Approved List for Collection) Act brought in new levies and taxes under items 12 – 25. Most of these taxes and levies were hitherto charged by the states and we have contested them on the grounds that they are not applicable to our operations. We had prior to now, relied on the previous taxes and levies before the amendment amongst other legislations,” he said.
According to Awonuga, the amendment gives the states a leeway to clamp down on telecoms operators with sundry levies, charges and taxes. He suggested that the instrument should fix fees, rather than allowing states and local governments to fix arbitrary fees. He called on the Nigerian Communications Commission, NCC, to engage the relevant authorities on taxes that were applicable to telecom operators to curb the number of demands operators receive from States/LGAs.
— Sep 14, 2015 @ 01:00 GMT
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