Connect with us

Telecom

Subscribers, Telcos Kick as FG Slams 5 Percent Tax on Calls and Data

Published

on

Kindly share this post

Federal government has slammed additional five per cent excise duty, that the telecom subscriber pays, which is different from the cost of voice call..

Subscribers, Telcos Kick as FG Slams 5 Percent Tax on Calls and Data

This was disclosed yesterday at a stakeholders’ meeting in Abuja, organised by the Nigerian Communications Commission (NCC).

Mr. Zainab Ahmed, minister of Finance, Budget and National Planning, was represented by Musa Umar, assistant director, Tax Policy, Federal Ministry of Finance, Budget and National Planning, while Frank Oshanipin, assistant chief officer in the ministry, did the ministry’s presentation.

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

However, minister of Finance, Budget, and Planning, at the event, urged stakeholders to support the implementation of the 5 percent exercise duty on telecommunications services.

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.

Earlier, in his remark, Prof Umar Danbatta, executive vice chairman/CEO NCC, 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.

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

Hameed represented by Mrs A.S Oshishi, assistant comptroller general NCS, 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, Engr Gbenga Adebayo, chairman, ALTON, 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.

“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.

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

Nnamani represented by Mr Ajibola Olude, ATCON executive secretary, 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.

Similarly, Chief Deolu Ogunbajo, president,  National Association of Telecoms Subscribers (NATCOMS), 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.

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”.

 


Kindly share this post

Telecom

Group Advocates for Digital Rights at 2024 Internet Governance Forum

Published

on

Kindly share this post

Paradigm Initiative (PIN), a leading pan-African organisation dedicated to advancing digital rights and inclusion in the Global South, has made significant contributions to the just-concluded 2024 Internet Governance Forum (IGF) in Riyadh, Saudi Arabia.

PIN’s participation in the prestigious global event underscores the organisation’s commitment to fostering inclusive digital policies and ensuring that Africa’s voices are central in global discussions about the future of the internet.

During the week-long forum, PIN team members played key roles in numerous sessions, emphasising the importance of a digital rights perspective in the development of emerging technologies, advocating for a more inclusive digital future, and addressing the specific challenges the African continent faces in terms of digital access and inclusion.

PIN Executive Director, ‘Gbenga Sesan, spoke at high-profile sessions, including the Leadership Panel on ‘The Internet We Want’, which outlined the vision for a global internet that is accessible, secure, and inclusive.

At the Africa Youth IGF Parley, ‘Gbenga provided a platform for young Africans to address pressing issues such as internet restrictions, the digital divide, and digital rights violations.

Adeboye Adegoke, Senior Manager for Grants and Programmes Strategy at Paradigm Initiative, contributed to Open Forum #12, advocating for policies that ensure a rights-respecting and inclusive digital future. His discussions highlighted the importance of policies that place human rights at the core of technological advancements.

Ihueze Nwobilor, Senior Programmes Officer, spoke at the session, ‘A Rights-Respecting Approach to Emerging Tech Development,’ where he called for the prioritisation of human rights in the development and deployment of emerging technologies across Africa and beyond.

The organisation’s Senior Manager for Partnerships and Engagements, Thobekile Matimbe, shared valuable insights during the ‘Better Products and Policies Through Stakeholder Engagement’ session.

She emphasized the role of the private sector in engaging with local communities to ensure that digital products and policies are inclusive and meet the needs of vulnerable groups across Africa.

Bridgette Ndlovu, PIN Partnerships and Engagements Officer, moderated a session on ‘Implementation of the USF in 26 African Countries,’ where she and other speakers, including ‘Gbenga Sesan, discussed the crucial role of Universal Service Funds (USF) in advancing digital inclusion, particularly in underserved and rural areas.

PIN’s participation at IGF 2024 has been an important moment for advocating digital rights in Africa. “Paradigm Initiative’s participation was a powerful reminder that Africa’s digital future must be shaped by inclusive, rights-respecting policies.

“Our participation at the IGF is a continuous demonstration of the need for all stakeholders to collaborate in building a more inclusive and accessible internet for everyone, especially those in under-served communities,” PIN Executive Director, ‘Gbenga Sesan stated.


Kindly share this post
Continue Reading

Telecom

Patricia Technologies Begins Repayments to Customers Affected by 2022 Security Breach

Published

on

Kindly share this post

Lagos-based financial technology firm Patricia Technologies has commenced repayments to customers impacted by a 2022 security breach. This follows a two-year period where the company focused on recovering funds and rebuilding trust.

In 2022, Patricia experienced a significant cyberattack, resulting in the loss of over 600 million Naira from customer accounts. Following the breach, the company temporarily restricted withdrawals and collaborated with law enforcement, leading to the arrest of several suspects, including a prominent politician.

Patricia had previously requested a two-to-five-year repayment window, a plan that has now begun to be implemented. The company has started disbursing funds to affected customers in phases, with the first batch of payments initiated on December 10, 2024.

CEO Hanu Fejiro emphasized the company’s commitment to its customers, stating, “This repayment process represents a milestone in fulfilling our promise to make things right.”

He encouraged customers to update their information on the Patricia platform and monitor official channels for further updates on their individual repayment timelines.

Subscribers who are getting paid in this phase have since been officially notified by email. One of the subscribers, with initials BP (for purposes of confidentiality), expressed appreciation and satisfaction with being paid by Patricia via an email reaction: “I really appreciate your effort. Though it took a long time, I’m satisfied with what I’ve received. Thank you for keeping to your words.”


Kindly share this post
Continue Reading

Telecom

From Niche App to Global Giant: TikTok’s Controversial Journey

Published

on

Kindly share this post

TikTok’s rise from a niche video-sharing app to a global social media giant has sparked controversies worldwide, with concerns over its links to China and its influence on users and politics.

In Albania, Prime Minister Edi Rama announced Saturday that TikTok would be banned for at least a year starting in 2025.

The decision follows a tragic incident in Tirana where a 14-year-old was killed and another injured in a fight stemming from an online confrontation. Rama described TikTok as the “thug of the neighborhood.”

In Romania, the European Union is investigating whether TikTok played a role in far-right candidate Calin Georgescu’s unexpected first-round presidential election victory.

The probe focuses on alleged Russian interference and claims of “preferential treatment” by TikTok. This marks the platform’s third EU investigation, potentially risking fines of up to six percent of its global revenue.

TikTok stated it has implemented “robust actions” to combat election misinformation, while Russia denies meddling.

In the United States, TikTok faces mounting pressure after the government passed a law in April requiring ByteDance, its Chinese parent company, to divest from the platform by January 2025.

The U.S. claims TikTok allows China access to American user data, a claim TikTok denies. ByteDance admitted its employees had accessed U.S. user data but insisted it does not share information with Chinese authorities.

TikTok could face a nationwide ban if ByteDance fails to comply, threatening its 170 million U.S. users.

Australia recently enacted a landmark law banning under-16s from accessing social media, including TikTok, with hefty fines of up to AU$50 million for noncompliance.

TikTok expressed disappointment, warning the law could push young users to less regulated parts of the internet.

In Europe, TikTok was forced to remove an engagement feature in its TikTok Lite version after EU regulators raised concerns about its addictive nature.

The feature rewarded users aged 18 and older with points redeemable for goods based on time spent on the app.

TikTok also faces criticism for its role in spreading hazardous challenges, some of which have reportedly led to child deaths, such as the blackout challenge.

Disinformation remains a significant issue, with a study by NewsGuard revealing that one-fifth of videos on topical subjects like the Russia-Ukraine war contained misleading or false information.

Despite these controversies, TikTok remains a dominant force in social media, attracting creators and influencers worldwide.

Its powerful algorithm and innovative features have secured its place at the forefront of digital engagement.

However, the platform continues to grapple with mounting scrutiny over its practices and societal impact.

TikTok’s meteoric rise has reshaped the social media landscape, cementing its status as a global powerhouse with over 1.04 billion monthly active users worldwide as of 2024.

This milestone, achieved in less than a decade, underscores TikTok’s unparalleled growth trajectory compared to platforms like Facebook and Instagram, which took significantly longer to reach similar heights.

In the United States alone, 170 million people actively use the app, contributing to its $16 billion U.S. revenue in 2023.

Globally, TikTok engages over a quarter of social media users and nearly one-fifth of internet users monthly, with U.S. adults spending an average of nearly an hour daily on the platform.

Its popularity is further evidenced by 137 million downloads in the first quarter of 2024.

Since its 2018 launch, TikTok has grown from 55 million users to over a billion, fueled by its dynamic algorithm and appeal across diverse demographics.


Kindly share this post
Continue Reading

Trending