Hike on advert, promo fees will amount to double taxation – telcos
By Felicia Nwosu
Telecommunication operators, in demonstration of their displeasure, have rejected the move by the Nigerian Communications Commission (NCC), which seeks to attract payments of fees over advertisements and promotions by telecom companies. The rejection came on the basis that it represented a multiple tax on the operators.
NCC on its part said the increase in prices for commercials and promotions were influenced by some economic forces which is a reflection of current reality, adding that it was also aimed at protecting the consumers. The Commission maintained that the payments on advertisements and promotions do not amount to taxation in any form.
This came to the fore after a three-day public inquiry on the draught of telecom regulations and guidelines by Adeleke Adewolu, Executive Commissioner (Stakeholders Management) of the NCC.
Mr. Ikenna Ikoku, who spoke on behalf of 9mobile, claimed that the payment of fees on advertisements and promos will amount to double taxation.
“We pay to ARCON and the lottery commission; paying to NCC again will result in multiple taxation. The NCC should only charge processing fees,” he said.
Ade Gbolahan, who spoke on behalf of Airtel, implored the commission to stick to its old fees at the old rate of N350, 000.
“The proposed fees should be left at N350, 000 as it is. This is another fee that the industry is not pleased with. We would want the commission to suspend the increase for the time being,” he said.
Meanwhile, the NCC Executive Commissioner said Advertising Regulatory Council of Nigeria (ARCON) and the Nigerian Lottery Commission (NLC) are regulators of advertisements and lotteries, while NCC is the regulator of the telco industry where they operate.
“I think multiple taxation is a strong word to use there. It is not in the form of a tax. These are fees for the administration of an application process whereby licencees have to apply to us. This is in the interest of consumers to ensure that where advertisements or promotions are being run on telecommunication platforms, they are done with responsibility, with existing laws and to ensure that the interests of consumers are considered. If you look at the rates for advertisements and promotions, these rates were set many years ago. They do not reflect the reality of today’s time and what we are already doing is bringing them in line with current trends in the country and industry,” he said.
According to him, NLC has a role to play as the regulator of lottery, adding that lotteries impact on consumers because people play it with their money. He explained that the commission has a mandate to ensure that the interests of people participating in lotteries are protected and their fees at a charge for the purpose of carrying out obligations under its act.
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