Multiple Tax: Telcos to impose different tariffs for calls, data in some states
Telecommunications operators in the country said they may be forced to impose discriminatory tariffs in some state to cushion the effects of multiple taxation and harsh business environments in the states.
In simple terms, if implemented, subscribers in those states considered to be hostile, would be charged differently for telephony services.
Gbenga Adebayo, chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), the umbrella body of telecommunications services providers, stated this at ‘The Nigeria eGovernment Summit 2023,’ with the theme, ‘eGovernment: Pathway to a prosperous nation,’ on Thursday.
Adebayo, said, “We have been talking about multiple taxation for many years. It may not be appropriate to continue to have one national tariff because if the cost of providing services in one region is high, services in that region should reflect the cost of service provision.
“If you have a state that has introduced 50 different taxes for the operator, the telcos need to pass it on to the subscribers there. Otherwise, we would remain on this issue for many years to come.”
The ALTON boss said telcos have spoken to the NCC about the issue, saying that they think the new move is the only way to mitigate the issue of multiple taxation and levies across state and local government levels.
According to him, the reality is that if the cost of doing business in a particular area is high, the cost of services in that area should also reflect the cost of doing business.
“It will be unfair on states that provide a bright friendly business environment to pay as much as states that have high hostility against service providers. And we believe that the time has come. Across different geographical regions, tariffs should vary. If you leave Lagos for Benin for instance, you would pay a different tariff. It is the same telephone service, but it is because regulations and rules in those regions differ. This is why end-user rates differ. So, we are saying that the time for national tariffs is gone. Today’s reality needs a new approach,” Adebayo stated.
The ALTON boss further explained that when a call originates from state A, it will attract a certain fee, which may be higher or lower than state B depending on the cost of providing services in the states.
“Let me take Lagos as a business-friendly state, if you cross to the border of the state say to Ogun (which for this illustration is not as business-friendly), the charges should differ.
“We are providing the NCC with data to back up this demand, but it is a direction that we must go. It is the only way to mitigate the multiplicity of taxes that exist because in some cases the cost of rolling out services is more expensive.”
The telecoms association chairman noted that the industry (telecoms) is expected to meet with e Dr Bosun Tijani, new minister of Communications, Innovation and Digital Economy, in the next couple of days to discuss industry issues.
