The Nigerian Communications Commission (NCC) has clarified that new fees imposed on advertisements and promotions do not amount to double taxation.
TheNewsGuru.com (TNG) reports NCC Executive Commissioner, Stakeholders Management (ECSM), Mr Adeleke Adeolu made the clarification in Abuja on Thursday at the closing ceremony of a three-day public inquiry on the draft of five regulatory instruments.
Mr Adeolu said that the new fees for advertisements and promotions are necessary to meet the current realities in the telecoms sector of the Nigerian economy and protect consumers.
The ECSM explained that the Advertising Practitioners Council of Nigeria (APCON) and the Nigerian Lottery Commission (NLC) are regulators of advertisements and lotteries, while NCC is the regulator of the telecom industry.
“I think multiple taxation is a strong word to use here. 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, existing laws and ensure that the interest of consumers is protected.
“If you look at the rates for advertisements and promotions, these rates are set many years ago. They do not reflect the reality of today and what we are already doing is bringing them in line with current trends in the country and industry,” he said, explaining that this will in no way have any effect on tariffs.
The ECSM boss, however, said that the NLC had a role to play as the regulator of lottery, adding that lotteries impact on consumers because people play with money.
He said that NLC had granted a role to ensure that the interest of people participating in lotteries were protected and their fees at a charge for the purpose of carrying out obligations under its act.
“The NCC on the other hand has the clear mandate to protect consumers in running advertisements on promo on telecommunications networks. The two acts are very clear and I do not think this amounts to multiple taxation in any way,” he said.
A representative of 9mobile, Mr Ikenna Ikoku, who spoke virtually in the course of the public inquiry, claimed that the payment of fees on advertisements and promos would amount to double taxation.
“We pay to APCON and lottery commission; paying to NCC again will result to multiple taxation. The NCC should only charge processing fees,” he said.
A representative of Airtel, Mr Ade Gbolahan, said that the commission should leave the 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,” Gbolahan said.
Also, Mr Damian Ude, of IHS Nigeria Ltd, called on NCC to review downward, the 10 metres requirement for deployment of communication infrastructure to five metres, especially in congested areas.