Telecom Operators Oppose Proposed 5% Excise Duty

The Association of Licensed Telecom Operators of Nigeria (ALTON) has strongly opposed the government’s proposal to reintroduce a 5% excise duty on telecommunications services. The operators argue that the levy would place an undue burden on subscribers and could disrupt services.

 

In a statement released by ALTON Chairman, Gbenga Adebayo, the association expressed concern about the negative impact of the levy on consumers, especially at a time when the industry and the economy are already facing significant challenges.

 

The proposed levy has been met with widespread opposition from industry stakeholders. The Association of Telecommunications Companies of Nigeria (ATCON) has also voiced its concerns, highlighting the potential consequences for consumers and the industry as a whole.

 

The government’s decision to reintroduce the excise duty comes just months after it was suspended by President Bola Ahmed Tinubu. This move has sparked fears of disruptions in telecommunications services, as operators may be forced to implement cost-cutting measures to offset the additional financial burden.

 

Telecom operators have been advocating for a tariff increase to address rising operational costs and the impact of inflation. However, the government has declined their request, urging them to find alternative strategies to manage costs.

 

The National Association of Telecommunications Subscribers of Nigeria (NATCOMS) has announced plans to take legal action against the government over the proposed excise duty. The association has previously filed a case against the government and is prepared to revive the legal challenge.

 

The reintroduction of the 5% excise duty has created a tense standoff between the government and the telecommunications industry. The outcome of this dispute will have significant implications for the sector’s future and the affordability of telecommunications services for Nigerian consumers.