The Minister of Communications, Mr Adebayo Shittu, has reiterated the Federal Government’s determination to provide the needed enabling environment for ICT and telecommunication sector to thrive through enactment of relevant legislations.

This information is contained in a statement issued in Abuja by the Special Assistant on Media to the minister, Mr Victor Oluwadamilare.

The statement quoted the minister as saying this at the Communication Services Tax Stakeholders’ Meeting organised by the Lagos Chambers of Commerce and Industry in Lagos.

The minister called on stakeholders in the communications sector to have holistic deliberations on the communication services tax as being proposed in the Communication Tax Bill pending before the National Assembly.

“This is necessary in order to weigh the effects of the proposed tax regime on the government, stakeholders as well as end users of communication services.”

He called for a juxtaposition of new tax regime with existing ones, saying that the introduction of new taxes without harmonising existing ones will put pressure on the Nigerian tax system, thereby making it unattractive to investors and consequently be counter-productive in the long run for the nation’s targets on broadband penetration.’’

The minister speaking extensively on controversies surrounding the proposed bill, said a section of the stakeholders had extrapolated that the Bill sought to impose additional nine per cent charges on users of electronic communication services “which is to be remitted to the Federal Inland Revenue Service on monthly basis, more so that the extra tax will be applied on voice calls, SMS, MMS, Data and Pay TV viewing, among other services.

“Others have posited that over 60 million Nigerians will be unable to afford basic broadband connection, a situation that is likely to threaten Nigeria’s ability to achieve its goal of 30 per cent broadband penetration by 2018.

“And also undermine the socio-economic progress spurred by increased connectivity. This to a large extent will be a cog in the wheel of implementing the National Broadband plan,’’ he said.

Shittu said that many had also concluded that the proposed bill would also discourage further investment in the communication industry due to reduced returns on Investment, and ultimately drastically reduce the sector’s huge contributions to the national GDP.

According to him, some have concluded that the proposed CST Bill is an ill wind that will blow the country no good.

“My focus on any tax regime will be to align any process that will stimulate the economy and also ensure that the tax system is efficient by widening the tax net and creating an effective framework for tax compliance.

“To protect the poor and vulnerable in the society who nonetheless have to use telecom services for social inclusion and financial services among others.

“The ITU gave Nigerian the mandate to achieve 30 per cent broadband penetration by 2018.

as I have been reliably informed that the projected earnings from this effort is over N20 billion every month.

“Which is an attraction to the government in funding our budget deficits? I must be quick to say that this government has got a human face twined around its decisions.”

The minister said that the goal of the ministry was to provide cost effective ubiquitous ICT access for overall national development.

Shittu added that the solutions were the passage of the critical National ICT Sector Infrastructure Bill.

“Hastening of the rollout of metro fibre networks, use of NIGCOMSAT Satellites to bridge the rural penetration gap and hosting of critical National Data within the country.’’

The minister said that the proposed National ICT Roadmap was poised to set out the intent and commitment of the government to continue the development of the ICT sector.

He said that the roadmap would also implement the sector policies and plans in an integrated, focused and innovative manner that aligned with the change mantra of the current administration.

He added that the roadmap focuses on five strategic pillars namely- governance, policy, legal and Regulatory framework, industry and infrastructure and capacity building.