..Inaugurates committee to review policy
…ATCON says investors will be willing to put more
money into the industry
…Move shows Govt is sensitive to operators, consumers concerns- ALTON
Respite as Federal Government suspended implementation of the 5% excise duty charge on telecom facilities earlier proposed by the FG
This is as stakeholders lauded the move.
The Minister of Communications and Digital Economy, Isa Pantami, disclosed this on Monday when he inaugurated a committee to review the 5% exercise duty in Abuja.
Pantami said that President Buhari granted his prayer for immediate suspension of the 5% excise duty.
“It is because of this the president have grant my prayers; no one immediate suspension of excise duty in the digital economy sector, and no two he approved that a committee be constituted to look into the matter carefully and advise him accordingly. This committee is to be chaired by the Minister of Communications and Digital Economy.”
“The president has appointment me to be his eyes and ears in the sector. and it is my responsibility to ensure we are just and fair to the operators, government and most importantly our people that are the consumers.”
He went further to tell the committee how he explained to the president on the effect of the excise duty on the sector.
“Of recent it was announced that some of our respected brother and sister (government officials), kick started the process of introducing excise duty in the telecom sector in which there and then, based on the constitution and being the representative of president Buhari in the sector. I rejected that whole heartedly
Being the representative of the president.
“I formalised my position and explainrd to him in a letter that could be referred to as a petition, (reasons; excise duty is usually fixed on luxury products
“I told the president (in the letter) that if care is taken that attempt will destroy the digital economy sector that is becoming the backbone of our economy.”
On why he kicked against the excise duty, he said, “Despite our achievements we have been recording some challenges in the sector and if care is not taken these challenges could be a barrier in the development of the sector in the next few years to come.
“One of them; excessive taxes and some times multiple taxation.
As it is today in the tax category of ICT sector (39) which is very worrisome.
“But as of today the ICT sector is over burdened by so many categories of taxes to the extend that today there are 41 categories of taxes at the federal and state level, particularly in the telecom sector. Some at federal level and some at state level.
“Beside these taxes are multiple taxes (the same taxes being collected at the federal is also what the states are insisting be paid to them. If care is not taken this is what will jeopardise the achievements and gains that we have recorded so far in the sector.”
Pantami noted that prices of products and services in order sector have increased significantly but the prices of products and services have not increased significantly in the last three years.
The mobile Network Operators looking at things outside our sector like petroleum products, exchange rate, inflation, devaluation of the currency among others have been coming with many initiatives asking the regulator to allow them review their prices upward.
“And whenever the regulator escalates the matter to me; I will always encourage and urged them to try and persevere with the little profit they are making because the current economic situation in Nigeria doesn’t allow us to continue to add burden on our poor citizens that our suffering and can hardly get three square meals in a day and broadband and telecommunications services are becoming a necessity that a luxury.
In his words, “MNOs has been coming to us to allow them increase prices of their products both I have been encouraging them to be patient. In this three years there were more than 15 attempts to increase the price of telecommunications services and in all of them I retained my position; saying no.”
The Minister of Communications and Digital Economy will serve as Chairman of the Committee.
Members of the committee include: Pantami Chairman, while the Minister of Finance and National Planning, Chairman, Federal Inland Revenue Services (FIRS), Executive Vice Chairman (EVC) of the Nigerian Communications Commission (NCC) and Representative of all Telecom companies in Nigeria.
Investors will be willing to put more money into the industry- ATCON
Reacting to the development in an exclusive interview with Nigerian Newssphere on Monday, the Executive Secretary Association of Telecommunications Companies of Nigeria(ATCON), Mr Ajibola Olude said investors will be willing to put more money into the industry.
According to him, “For me it is good development and the Minister should be commended. It is a temporal measure. We hope that it stayed suspended. With the annoucement, telecommunications operators will have to go back to status quo. The implication is that Investors will be willing to put more money into the industry”.
Move shows Govt is sensitive to operators, consumers concerns- ALTON
Similarly, in another exclusive interview with Newssphere, the Chairman Assoication of Licensed Telecom Operators of Nigeria(ALTON), Engr Gbenga Adebayo said that government’s decision has reiterated its commitment to operators, consumers concerns and broadband penetration.
“We are pleased about it, it showed that government is committed to broadband penetration.
“What it will do it showed to the investors government is sensitive to the concern of consumers of service. And has further boost investors, consumers confidence on the Government and policy markers.
“It is a first step in the right direction, he stressed.