By Emeka Aginam
The Association of Licensed Telecommunication of Nigeria, (ALTON) has again raised alarm on the impact of multiple taxation on telecom operators in the country, saying that  multiple taxation which serves as a disincentive to investor has been a key challenge.

The Chairman of ALTON, Engr. Gbenga Adebayo who spoke recently at the just concluded ICT  Taxation, Clean Environment summit  told the capacity audience in attendance that their members were worried  at the  direction the quest for internally generated revenue was  taking in the telecoms industry, particularly at the state and local levels.

Even as revenue sources are critical for the development of Nigeria, without mincing words, he told the gathering that: “Our members are constantly harassed, their base stations and offices locked indiscriminately by governments, especially at the lower ties due alleged refusal to pay taxes and levies.

“With respect, our major challenge stem from the activities of States and Local Governments. Members have brought documents evidencing requests for taxes and levies that are, in our view, outside of what is prescribed by law. We hear also with evidences from our members, instances where State and Local Government Authorities have physically invaded offices, locked up Base Stations and employed other unwholesome tactics to enforce these taxes and levies.

“While it is recognized that government at all levels need to generate revenue in their jurisdictions to enable them provide the statutory obligations to citizens, the collection of such taxes and levies should not be done outside the ambit of the law and best practice.

Where taxes are collected outside the laid down legal and regulatory framework, it would discourage business and investment in such areas and will ultimately erode the revenue base of the these authorities
The Law:
“The law specifically provides that only appropriate tax authorities shall assess or collect taxes. It does not mention consultants.

“The immediate and long term effects of discouraging business include a negative impact on the ability to create new jobs due to the high operating costs, loss of revenue for Government in terms of taxes which can be legally obtained, slow or no economic growth, economic distress, closure of businesses and et al.

“In addition to the statutory taxes levied on operators, the Telecommunications Operators pay Annual Operating Levy (AOL) of certain percentage (%) of earnings to the Nigerian Communications Commission (NCC) and are required in addition to pay various rates and charges to other Federal Government agencies (e.g. Consumer Protection Council, Nigeria Lottery Commission, Federal and State Ministry of Environment etc), authorities in every State and Local Government in which they operate;

“We have observed that telecommunications operators are often singled out for discriminatory treatment and taxation by many MDAs and are subjected to high rates and taxes. – an example of that is a South Eastern State that charges N450, 000 as levy for environmental fee and thereafter sent armed policemen and thugs to threaten arrest of a manager of one of the service providers if payment was not made; payment was eventually made in protest.

“The side effect of the lockup sites are poor quality of service and security amongst others as criminals takes advantage of no service to perpetuate crime. Operators have offered and offering needed support to security agencies when required within the context of the law and in the best interest of the Country” he said.

If a State like Abia, Enugu, Bauchi States to mention a few, according Alton Chairman  could lockup hundreds of BTS including backbone facilities,  the service in those states will be bad and encourage crime like kidnapping.