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Telecom Subscribers To Pay 5% Tax On Call, Text, Data

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The Federal Government has disclosed that telecommunications subscribers would pay a 5 percent tax on call, SMS, and data services.

This is coming as the Association of Licensed Telecoms Operators of Nigeria (ALTON), Association of Telecommunications Companies of Nigeria (ATCON), and National Association of Telecoms Subscribers(NATCOMS), described the move as strange, insensitive, and irresponsible.

DAILY POST learnt this during a Nigerian Communications Commission (NCC) Stakeholders Forum on the Implementation of Excise Duty on all Telecommunications Services’ held on Thursday in Abuja.

Speaking at the event, the Minister of Finance, Budget, and Planning, Mrs Zainab Ahmed urged stakeholders to support the implementation of the 5 percent exercise duty on telecommunications services.

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Zainab represented by the Assistant Director, Tax and Policy, Mr Musa Umar appreciated NCC for providing the platform to increase Nigeria’s revenue generation.

She highlighted that countries in Africa like Malawi, Uganda, Tanzania, and others have all keyed into this revenue generation pattern.

She emphasised that this is needed to change Nigeria’s economic situation for good.

The issue of revenue is not something that needs to be shied away from, our revenue can no longer take care of our needs as a country.

“Also Nigeria is no longer making enough money in Oil revenue hence the attention is shifting to Non-revenue”.

She explained that the government is committed towards implementing the regulation in a seamless manner that will not affect Nigerians.

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Earlier, in his remark, the Executive Vice Chairman/CEO NCC, Prof Umar Danbatta said the forum is necessitated for stakeholders to get better clarifications on the 5% exercise duty on telecom services implementation.

As the telecoms industry regulator, the Nigerian Communications Commission has engaged with the Federal Ministry of Finance, the Nigerian Customs Service, and consultants from the World Bank to get needed clarifications.

“These engagements enabled us to better understand the objectives and proposed implementation mechanisms of the Excise Duty.

“Nonetheless, we consider it imperative that these implementing agencies should also meet directly with telecoms industry stakeholders to address areas of concern”, he stated.

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On his part, Comptroller General of the Nigerian Customs Service, Hameed Ali urged stakeholders to be patriotic toward implementing the policy.

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Hameed represented by the Assistant Comptroller General NCS, Mrs A.S Oshishi revealed that telecommunications operators are expected to be dully registered with the service for seamless actualization of the process.

Either to pass the cost to consumer or capture it in an appropriation. The payment is to be made in arrears, on the 21st of every month”, he stated.

Reacting to the development, the Chairman, ALTON, Engr Gbenga Adebayo insisted that the new tax burden would be passed to subscribers.

“It is a strange move, it appears a bit unusual. exercise duty is supposed to be apportioned to goods and products, but we are surprised this is on Services.

“We will continue to support the government but ALTON, won’t be able to subsidy this on behalf of subscribers in addition to the 7.5% VAT making it 12.5% payable by subscribers to the federal government.

“We currently pay a lot of taxes, running into 39 of them, so we can add more to our existing burden. We won’t be able to absolve this on behalf of subscribers.

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“The 5% Excise Duty will be paid by the subscribers. It will collected by the operators on all voice and data services including OTT and remitted to the Nigerians Customs”, he stated.

On his part, the President of ATCON, Engr Ken Nnamani said, “the proposed exercise duty do not comply with principle of taxation, fairness, certainty, convenience and efficiency”.

Nnamani represented by ATCON Executive Secretary, Mr Ajibola Olude said FG has continued to turn a blind eye to the issue of foreign exchange, others challenges facing telecom operators in Nigeria.

He added that the telecom industry is bleeding yet the federal government want to exacerbate the plight of operators with additional taxation.

He appealed that the implementation of the exercise duty should be stepped down because many youths in Nigeria will lose their jobs.

He advised that the government should channel its efforts to developing other sectors.

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Similarly, President National Association of Telecoms Subscribers (NATCOMS), Chief Deolu Ogunbajo said the government’s action is insensitivity and ill-timed.

“It is unfortunate that 5 percent exercise duty is coming again together with other 38 taxes.

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He said, other countries in Africa paying 5% tax on telecommunications services do not have 39 others taxes.

In his words, “this is insensitivity, and irresponsible. Government should not kill the telecom industry”.

DAILY POST gathered that the affected telecommunications services include all services that required license from NCC. It is talk time, Short message services(SMS), call-back services, call facilitation through VoIP, and an international call gateway.

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Recall that on 31 December 2020, President Muhammadu Buhari signed into law the Finance Bill 2020 (now Finance Act 2020) which introduced amendments to 14 tax and fiscal legislations in Nigeria.

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Soludo Admits Refusing To Construct Road Due To Political Affiliation

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The Anambra State Governor, Prof. Chukwuma Soludo, has said he initially declined to construct a road in Okpoko community in Ogbaru Local Government Area of the state because the House of Representatives member representing the area, Noble Igwe, was in the opposition party.

Soludo said that when the house member complained about the poor state of the road, known as Nwokedi Street, to him, he dismissed his complaints because he was in opposition.

The governor stated this while inaugurating 12 km of roads in the Okpoko area on Monday.

READ ALSO: DHQ Vows Decisive Response To Killers Of Soldiers In Delta

He said, “I rejected the advice to develop Nwokedi Street because the House member representing the area was formerly in the opposition. As of the time he brought the poor state of the road to my attention and advised it should be repaired, he was in the opposition then, and I did not listen to him.

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“But one day, I was taking a walk, one guy showed me a road which the honourable member representing Ogbaru constituency 1, Noble Chukwunoso Igwe, had spoken to me about and because he was an opposition, I could not do any thing on the road then.

“Today, Noble Igwe is in our party, and he is a mainstream member, so we have listened to him. When he was in the opposition, he was in the parlour talking but his voice could not be heard, but today, he is not only a mainstream member of our party, but he is right in the bedroom talking with us. You cannot be outside and be talking, you have to come inside the bedroom so that we can listen to you.”

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Soludo urged the people to support his government.

He said he is in governance because of places like Okpoko, noting that he will rebuild Okpoko and give the people a sense of belonging.

“Even if there is no money in Anambra, we wouldn’t mind using all the money in Anambra to develop Okpoko. Okpoko must be rebuilt. One of the reasons I became a governor was to give Okpoko identity,” he added.

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DHQ Vows Decisive Response To Killers Of Soldiers In Delta

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The Defence Headquarters on Monday vowed that there would be measured responses and injurious consequences for killers of its personnel in Delta State.

No fewer than 15 military personnel were killed during a communal clash over a land dispute in Bomadi and Okuoma communities in Delta State.

The personnel attached to the 181 Amphibious Battalion were responding to a distress call when they were ambushed and killed on Thursday.

The DHQ, in a statement by the Director, Defence Media Operations, Maj. Gen. Buba Edward, stated that its rule of engagement and human rights laws would be respected while dealing with the culprits.

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The statement partly read, “The senseless and barbaric killings of these men is a tragedy. They were killed in a dehumanised and unspeakable manner. Accordingly, on behalf of the CDS, Gen CG Musa, the armed forces mourn the loss of these gallant troops who paid the supreme sacrifice for the nation. We console their families, colleagues, and loved ones over the tragic incident. They have died trying to restore peace in the nation.

“It is necessary to reiterate that both the Constitution and the Armed Forces Act saddled the military with the responsibility of the protection of sovereignty and territorial integrity of our nation. Accordingly, the armed forces consist of citizens from every nook and cranny of the nation that have taken an oath of allegiance to put themselves in harm’s way to defend our great country.

“The military assures all that there would be measured responses and injurious consequences for the perpetrators of these dastardly acts. Nevertheless, the armed forces being a disciplined force that complies with rules of engagement, laws of armed conflict, and respect for human rights would be tempered by these provisions. We would not be led by emotions but by the rule of law.”

Buba also denied reports of reprisal attacks by troops in the community after the incident.

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According to him, the community had been deserted before the arrival of the troops on the scene.

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Buba urged those dishing out false information on the incident to stop disrespecting the dead.

He called on the community to assist the military in arresting the perpetrators of the heinous crime.

Buba said, “It is against this background that the military debunks all claims that the military embarked on reprisal attacks in Okuama Community after the incident. The community was deserted even before troops arrived at the scene.

“Importantly, those involved in peddling this misinformation, disinformation, and fake news that the military had embarked on reprisal attacks on the community following the incident should desist from further dishonouring our fallen heroes.

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“Rather, it behooves the community leaders, elders, and even the people of Delta State to assist in the investigation to identify the perpetrators of the dastardly act so that they can be held accountable for their actions.

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“Furthermore, it must be noted that the dispute between Okuama and Okoloba communities remains unresolved. It, therefore, implies that there could be untoward activities not initiated by the military.”

Buba, however, urged Nigerians to resist the temptation of sharing the gory videos of how the soldiers were killed.

“We urge the public to resist the temptation of allowing any videos of the incident of the killed personnel from going viral. Their loved ones are still alive, even though they have died protecting our country and its citizens.

“It would be dishonoured to the fallen heroes to allow such ugly videos of their demise go viral. Above all, as the military mourns, it remains ever determined to ensure the safety and security of citizens across the country,” he said.

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JUST IN: Tinubu Appoints Chairman, Executive Secretary For Almajiri Commission

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President Bola Tinubu has made adjustments to earlier appointments he approved at the National Commission for Almajiri and Out-of-School Children Education.

Brigadier-General Lawal Isa (retd.), whom he appointed Executive Secretary on March 15, will now serve as chairman of the commission.

Dr. Idris Sani will now serve as its executive secretary/CEO.

The President’s Special Adviser on Media and Publicity, Ajuri Ngelale, revealed this in a statement he signed Monday evening titled ‘President Tinubu appoints new Almajiri Education Commission leadership team.’

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“Brigadier-General Lawal Ja’afar Isa (Rtd) is now to serve as the Chairman of the Board of the Commission, while Dr. Idris Sani is to serve as the Executive Secretary/CEO,” the statement read.

Sani replaces Sha’aban Sharada, who served as the commission’s pioneer leader since its creation in May 2023.

On May 28, 2023, former President Muhammadu Buhari assented to the National Commission for Almajiri and Out of School Children Education Bill 2023 and appointed Sharada, the outgoing Member of the House of Representatives for Kano Municipal, as Executive Secretary.

A former military administrator of Kaduna State from 1993 to 1996, Ngelale described Isa as a respected leader.

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Meanwhile, Sani holds master’s and doctorate degrees in Islamic Studies.

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He was the Director-General, Al-Iman School Lafia; Commissioner, Basic/Secondary Education, Yobe State; Chairman, Nigerian Arabic Language Village, Borno State; Member, Nasarawa State Government Committee on Enlightenment Campaign, and Secretary-General, Association of Private Schools in Nasarawa State.

The President expects that the new appointees will “bring their vast experience into the management of this critical Commission, which impacts the very core of society, by ensuring that his administration’s drive to guarantee Nigeria’s out-of-school children the most comprehensive education is realized in the superseding interest of the nation’s future,” said Ngelale.

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