NCC advocates fair taxation that will not stifle innovation

 

Emmanuel Ukudolo I Thursday, Oct. 05, 2023

 

ABUJA – The Nigerian Telecommunications Commission(NCC) has underscored the importance of taxation for funding government’s initiative, stressing that it must however strike a delicate balance between  revenue generation and industry growth.

Executive Vice Chairman of the NCC, Professor Umar Garba Danbatta who was speaking on ‘NCC Special Day’ during the 18th Abuja International Trade Fair organised by Abuja Chamber of Commerce and Industry  with the theme, “Sustainable Financing and Taxation” said the role of the  NCC as a regulator is to advocate for fair taxation practices that do not stifle innovation or place undue burden on consumers. 

“We acknowledge the intricacies of tax policies but emphasise the importance of creating an environment where telecommunications companies can thrive”, he emphasised. To address these challenges, the Commission he said continuously engages both the Federal and State Government on the need to harmonise taxation in the telecommunications sector.

He said the Commission recognizes the fact that the telecommunications sector has been a strategic driver of the digital economy agenda of the Federal Government, as it continues to provide the needed digital stamina to support the economy, especially through technology.

“It is no longer news that telecommunications empowers individuals, connects businesses, strengthen industries and enable Governments to provide essential services efficiently thereby driving development and prosperity”, he said.

ICT as enabler of innovation and development

According to him, Information Communications Technology (ICT) is not only one of the fastest growing industries – directly creating millions of jobs – but it is also an important enabler of innovation and development, as it provides the backbone infrastructure for transactional business and taxation for the Government. 

He explained that maintaining this digital infrastructure and its continued growth necessitates substantial investment.  Danbatta revealed that the number of active mobile subscriptions has reached 220,715,961 million as at August 2023, while Teledensity stood at 115.63 per cent at the same period. 

“Also, the number of active Internet subscribers was 159,034,717 Million with broadband penetration at 45.57 per cent as at August, 2023. In this new environment, the competitiveness of Nigerian businesses depends on their ability to leverage on new technologies by acquiring the necessary digital skills to do business on an international scale. This in turn benefits the economy financially”, he said. 

In his remarks, Director Consumer  Affairs Bureau(CAB), Mallam Alkasim A. Umar said the NCC plays a critical role in the development of the telecommunications industry in Nigeria. 

“As the industry continues to grow and evolve, it is essential that we address the issue of sustainable financing and taxation to ensure its long term viability,” Umar said.

He emphasised NCC’s commitment to ensuring fair competition and a level-playing field for all stakeholders in the telecommunication industry, particularly in safeguarding the interest of consumers from abuse of their rights and privilege, and against unfair practices in the telecom service value chain. 

“This commitment is demonstrated by the Commission’s continuous effort to establish seamless programs that will Protect, Inform and Educate (PIE Mandate) telecom consumers through various consumer-centric initiatives”.