By Emeka Aginam & EMMA ELEBEKE
Executive Commissioner, Stakeholder Management of the Nigerian Communications Commission and chairman of the Industry Working Group on Multiple Taxation in the Telecommunications industry (IWG) Mr. Okechukwu Itanyi, has warned that recent developments in the sector with regards to spurious taxes and levies by the state, local governments and their agents, portend grave dangers for the sector.

Speaking at a briefing in Lagos on multiple taxation and its dangers to the growing telecoms industry, Itanyi expressed worries that illegal taxation is threatening the gains in the sector and appealed to the National and State Houses of Assembly to enact laws that would recognize telecoms equipment as critical national infrastructure.

He also noted that for the country to achieve broadband access, the industry needs more support from government and urged the Federal Inland Revenue Service and the Joint Tax Board (JTB) to urgently address the issue by calling the states, local governments and their agents to order.

“We also urge the JTB to take urgent steps to define and publish areas of jurisdiction of the Federal and state governments with respect to the issues bordering on collection of taxes and levies”

The IWG chairman pointed out that the industry still requires investments in network infrastructure to ensure full access across the country, and to guarantee good and acceptable quality of service which has become a challenge.

According to him, Abia State Infrastructure Development Fund Board, for example,  is demanding N19 million from Airtel as infrastructural development while the state Environmental Protection Agency demands N300, 000.00 {three Hundred Thousand Naira} per new site for Environmental support fee and EIA Registration and its Town Planning Authority, N650,000 {Six Hundred and Fifty thousand Naira} per site as permit/ processing fees.

He also mentioned Abuja Municipal Management Council demand notice to MTN for the payment of over N257 million as annual charge for their sites in the FCT while Bauchi State Signage and Advertising Management Agency demand notice to Airtel for the payment of N755 million as a signage, branding and advert levy and Katsina state Urban development Authority, N755,000 as Building permit and EIA fee, etc.

He further explained that the base stations which state and local governments are eager to tax form part of infrastructure required for network transmission and coverage and likened them to  PHCN transformers and power lines which brings electricity to homes.