New Telegraph

February 23, 2024

MTN, Airtel, Glo, 9mobile Pay Over 49 Taxes, Levies, Demand Tariff Increase

Nigeria’s telecommunications companies have been asked to remit a substantial number of taxes and levies to governmental bodies across the three tiers and various non-state entities.

The Association of Licenced Telecom Operators of Nigeria (ALTON) made the disclosure in a recent report sighted by New Telegraph

The report suggests that operators are compelled to make these payments, or their base transceiver stations (BTS) may face the threat of closure, potentially jeopardizing the quality of service (quality of service) they provide.

Recall that a few weeks prior, ALTON made a suggestion on behalf of the telecom operators that users would experience different rates for calls, data, SMS, and other services in different states.

The telecom providers revealed that the goal of this move is to solve the problem of unduly high taxes in different business conditions in different states.

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The Right of Way (RoW) fees and other financial changes specified in the Finance Act 2023 are faced by telecom companies.

These adjustments, according to certain media outlets, include increasing the 2.5% Tertiary Education Trust Fund Tax to 3%, implementing Value Added Tax (VAT) on mobile towers or BTS, In addition, as stated in Section 32 of the amended Companies Income Tax Act, there would be import taxes on commodities and no longer be capital allowances for telecom services and equipment.

These challenges are further exacerbated by the surge in legislative bills introducing fresh taxes and levies on private enterprises, including telecom operators, within the National and state Houses of Assemblies.

The document reaffirmed the telcos’ dedication to enhancing Quality of Service (QoS) and the overall quality of experience for all subscribers.

They emphasized their ongoing investments in expanding network coverage and capacity to enhance the overall quality of service, all for the benefit of their valued customers.

Apart from the issues mentioned above, the telcos are battling to retrieve from banks an outstanding N120 million debt owed from Unstructured Supplementary Service Data (USSD).

Meanwhile, it had been reported earlier that the Nigerian Communications Commission (NCC) introduced fresh directives for telecom companies to enhance customer experiences and relationships.

These new guidelines are designed to adhere to Section 57 of the NCC Act, which permits stakeholders to provide input on policy matters.

According to the NCC’s official documentation, the regulator has requested telecom firms to ensure that customers are attended to within 30 minutes of their arrival at any of the company’s service centres throughout Nigeria.

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