Thursday, August 18, 2016

Step down CST bill now says ATCON, warns of chronic recession

The Association of Telecommunications Companies of Nigeria (ATCON) has called on those propagating the proposed Communications Service Tax (CST) bill to step it down, reports ITRealms.

The National President of ATCON, Mr. Olusola Teniola, made this call at the stakeholders forum on CST hosted by the Lagos Chambers of Commerce and Industry (LCCI) in Lagos on Wednesday, warning of ‘Chronic Recession.’

ATCON, he said believes any action that has the potential to derail the telecoms industry should be avoided by all tiers of government in Nigeria as the benefits of imposing a Communication Service Tax on telecoms subscribers are far lower than the revenue that it is going to create for the government.

ATCON insist that the proposed Communications Service Tax bill should be stepped down, arguing that doing otherwise, will speed-up the nation into ‘Chronic Recession.’

The high taxation, ATCON said, takes so much away from both the telecoms operators and subscribers that little or nothing is left to run the business.

The group also advised the Federal Government and any government tiers to boost the economy with increased government spending, outside which will result in stagflation thereby causing simultaneous high inflation and unemployment instead of prosperity.

Further, ATCON described the CST as lack of innovation, because the operators in the sectors are already faced with multiplicity of taxation, thus the group considers the proposed Communications Services Tax bill unnecessary and prohibitive.

“Imposition of Communications Services Tax bill could stifle innovation and creativity in the sector and this would automatically reverse the gains already made in the past decade,” ATCON president said, stressing that this might lead to increase in unemployment, decrease in revenue accruable to government which would heighten the county’s poverty level.  

Chuks Egbune/GEE
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