Business
ICC Wants Tax Reduction On Telecoms’ Goods, Services
The International Chamber of Commerce (ICC) has urged all countries to reduce the taxation on telecommunications’ goods and services to encourage the growth of the sector.
Mr Eric Leob, Co-Chair, ICC Taskforce on Internet and Telecoms Infrastructure and Services, said in the latest edition of Nigerian-South African Chamber of Commerce (N-SACC) newsletter that taxes had retarded the sector.
“Discriminatory taxes unnecessarily stifle the adoption and use of broadband, mobile and other advanced information and communication technology (ICT) tools.
“These are the major drivers of development and growth in the information-based economy of the 21st century,” Leob said.
He said that several countries apply severe taxes on telecommunications’ goods and services than other goods and services.
According to him, such taxes are capable of driving the sector underground.
“Indeed, the trend of applying heavy taxes to telecommunications, often to subsidise non-telecommunications initiatives is increasing, even as countries identify telecommunications adoption as a fundamental goal for all citizens,” Leob said.
He said that taxes that impede the goal of universal adoption should be re-evaluated to enable the sector to provide substantial benefits to all citizens.