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Reps probe ‘tax evasion’ by telcos

Reps probe ‘tax evasion’ by telcos
December 20
16:31 2019

The house of representatives has resolved to investigate the reported failure of telecommunications service providers to pay tax accruable to the National Information Technology Development fund.

The lower legislative chamber made the resolution at Friday’s plenary session following a motion introduced by Uzoma Nkem-Abonta from Abia state.

He said the National Information Development Agency (NITDA) Act established the fund into which specified companies are to pay a levy of one percent of the profit before tax.

He said among the companies covered are those with annual turnover of N1 million and above, including telecommunication service providers as well as cyber companies.

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Abonta, however, said the telecommunications companies have not been paying the tax as required. He alleged that while some have paid for a few years, others have not paid at all.

“In reality, these companies make huge amount of annual profits that run into billions of naira,” he said.

“With the aid of officials, they may be resorting to sharp practices that will enable them declare loss or less profit, thereby avoiding payment of National Information Technology Development tax or making underpayment.

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“If (the) companies are allowed to evade or underpay tax, Nigeria will continue to lose a veritable source for generation of revenue and development will be slow or hampered.”

The house subsequently urged its committee on ICT to investigate thy e matter and report back its within one month.

1 Comment

  1. by_stander
    by_stander December 21, 18:15

    Its clear people are going mad in this country.

    The same NITDA that makes it impossible for tech startups do viable data protection and security related business in Nigeria?

    Nigeria tech industry is not failing because of telecos tax, its is failing because you want companies making N1million turnover to pay you tax.

    Untop of that you do not buy any service or product produced by a company making turnover of 1 million naira

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