The spate of inflation in Nigeria is about to be compounded in Nigeria with telecom operators preparing for an increase in tariff on their services.
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Telecommunication subscribers in the country may be in for a rough year as the network operators are said to be considering another increase of their tariffs soon in order to sustain services amidst a tough operating environment.
Sources within the industry told Leadershio Weekend that the major reason for the planned hike, according to the telecommunication operators, was the increasing multiple taxation by governments at different levels.
It would be recalled that the proposed new data tariff floor, approved by the Nigerian Communications Commission (NCC), was suspended last December, after a public outcry and intervention by the Senate.
In its reaction, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) has expressed its dissatisfaction with the new development.
It made its position known in a statement by its chairman, Mr. Gbenga Adebayor. This year, Nigerian telecom consumers may witness increase in their voice, data and broadband services from the mobile network operators.
Already, the planned introduction of a nine per cent Communications Service Tax (CST) by the federal government through the National Assembly to shore up 2017 budget revenues may be another trigger that would lead to the hike.
Engr. Adebayo said, “The tax bill, if enacted, will bring hardship to telecom subscribers. ALTON and some stakeholders, like the GSMA, Consumer Advocacy Foundation of Nigeria (CAFN) and NATCOMS have jointly spoken out that the bill is unacceptable to us.”
Meanwhile, the president, Association of Telecommunication Companies of Nigeria (ATCON), Engr. Olusola Teniola, noted that telecom companies do not object to tax reforms nor regard taxes as a burden.
“The truth is that there is severe over-taxation in our industry. It explains the slow penetration of services into unserved areas of the country.
“Contrary to popular belief, telecom operators and service providers are barely sustaining existence in these times. We, therefore, suggest that an increase in value added tax (VAT), which is already included in all services of telecommunication by an increase that is not beyond one per cent, should be a good reform strategy,” he said.