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Experts Warn Against Communications Tax

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Services Tax
  • Experts Warn Against  Communications Tax 

With Information Communication Technology,ICT, being considered as a resort to salvage the economy in its perilous times, experts have advised Federal Government against introduction of communication service tax.

They posited that the government should rather provide incentives for operators in the sector to encourage more investment.

According to the President of Association of Telecommunication Companies of Nigeria ,ATCON, Olusola Teniola, while the government was struggling to balance its budget in the face of recession, it must provide enabling environment such that would sustain businesses and not to further discourage investment through multiple taxes.

It would be recalled that association which recently paid a courtesy visit to the Senate President, Dr. Bukola Saraki, appealed to the government to cut down the proposed CST from nine per cent to 0.2 per cent .

“The truth is that there is severe over-taxation in our industry. It explains the slow penetration of services into areas yet to be covered by our services across the country. Contrary to popular belief, telecommunication operators and service providers are barely sustaining their existence in these hard times.

“There are reasons to suggest that the desire to widen the tax net is laudable and that as things stand telecommunication is about one of the few areas where the net-capture may be widened,” the ATCON boss stated.

Still maintaining this position, Teniola stated that an attempt to introduce additional tax to a sector that was still battling excessive taxes would do more harm than good to the economy.

The ATCON President who restated the association’s position at a media briefing yesterday noted that the proposed move would be technically and economically disastrous.

“Now that the Central Bank had exhausted all the tools in its arsenal to remedy economic problems, it is high time we talked less and acted more as we may be heading towards depression if we don’t act fast.

“At a time like this when the government is looking at diversifying the economy through ICT, it is imperative that the sector is projected positively by making it attractive to both operators and consumers.”

Suggesting how to make the sector beneficial to operators, Nigerians and the economy, Teniola pointed out that “Government should come up with incentives like tax holiday, tax rebate and other motivations that would drive foreign investment into the country and create a broadband environment as data is gaining more popularity than voice service.

“It is necessary at this stage that the local content bill be adopted and also implement the bill in Oil &Gas to ICT through the Office of Nigerian Content Development in ICT (ONC).This will help reduce capital flight.

He was quick to identify lack of access to foreign exchange as one of the challenges demotivating operators in the sector hence, urged government to look into it without any delay.

He expressed the readiness of the association to work closely with the authority at resolving and arriving at an appropriate balance to present economic problems adding that the association was committed to defend and sustain the investment of its members.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Fintech

From Trading to Credit: Robinhood Launches No-Fee Credit Card with Gold Membership Perks

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Robinhood

Robinhood Markets Inc. has announced the launch of its highly anticipated no-fee credit card and it was accompanied by exclusive perks for Gold membership subscribers.

This bold move is a step in the company’s mission to evolve into a comprehensive financial services provider.

The Robinhood Gold Card boasts an array of enticing features. Chief among them is the absence of annual costs or foreign transaction fees, positioning it as an attractive option for consumers seeking financial flexibility.

Moreover, cardholders stand to benefit from a generous 3% cash back on all categories of purchases, a competitive offer in comparison to industry rivals.

Vlad Tenev, CEO of Robinhood, emphasized the company’s commitment to innovation and industry leadership in an interview.

He expressed the intention to not merely introduce a credit card, but to revolutionize the market with a product that sets new standards for customer satisfaction and financial empowerment.

The announcement has sparked enthusiasm among investors, with Robinhood’s shares witnessing a 6.9% surge in early market trading following the news.

This surge further underscores the market’s confidence in the company’s strategic direction and its potential to disrupt traditional financial services.

Beyond the credit card venture, Robinhood has been steadily diversifying its offerings. With the introduction of retirement products and the expansion of commission-free trading services internationally, the company is positioning itself as a formidable player in the global finance landscape.

As Robinhood continues to innovate and expand its suite of services, its trajectory suggests a promising future as a leading force in democratizing access to financial tools and services.

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Telecommunications

NCC Files Copyright Infringement Charges Against MTN Nigeria and Others

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Karl O Toriola - Investorsking.com

The Nigerian Copyright Commission (NCC) has taken legal action against MTN Nigeria Communications Ltd. and four individuals, including its Chief Executive Officer, Karl Toriola, over alleged copyright infringement.

The charges, filed in the Federal High Court, Abuja Division, revolve around the unauthorized use of musical works belonging to artist Maleke Idowu Moye.

According to the NCC, the defendants are accused of offering for sale, selling, and trading musical works of Maleke without his consent between 2010 and 2017. These works were allegedly used as Caller Ring Back Tunes without proper authorization.

The musical pieces in question include popular tracks such as “911,” “Minimini-wanawana,” and “Stop racism,” among others.

The commission further alleges that the defendants distributed these musical works to subscribers without authorization, infringing upon the rights of the artist.

The charges are based on provisions of the Copyright Act, Cap. C28, Laws of the Federation of Nigeria, 2004.

As the case awaits assignment to a judge and a fixed date for mention, it marks a significant development in the ongoing efforts to uphold copyright protection in Nigeria’s telecommunications sector.

This legal action underscores the NCC’s commitment to safeguarding the intellectual property rights of artists and creators within the country.

MTN Nigeria, a major player in the telecommunications industry, now faces a legal battle that could have broader implications for how intellectual property rights are respected and enforced within Nigeria’s digital landscape.

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Telecommunications

MTN’s MoMo Sees 32.2% Surge in Transaction Volumes

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MTN Nigeria - Investors King

MTN Group’s mobile money platform, MoMo, has experienced a 32.2% surge in transaction volumes.

With 72.5 million active users, MoMo continues to solidify its position as a leading fintech service provider in Africa, tapping into the continent’s burgeoning mobile banking sector.

The company’s success underscores the growing trend of Africa’s young and tech-savvy population embracing mobile technology to address financial needs.

Mobile phones are increasingly becoming a tool for bridging gaps in services, particularly in banking, presenting a lucrative opportunity for wireless carriers like MTN to capitalize on the burgeoning fintech market.

MTN’s achievement comes as it finalizes a deal with Mastercard Inc., valuing its fintech business at an impressive $5.2 billion.

This strategic partnership further enhances MTN’s position in the digital finance space, positioning it for continued growth and innovation.

However, MTN is not alone in its fintech endeavors. Rivals such as Airtel Africa Plc, Safaricom Plc, and Vodacom Group Ltd. are also making strides in digital transformation, with plans to separate and monetize their fintech businesses in the long term.

Airtel Africa, for instance, is reportedly considering an IPO for its mobile money unit, indicating the high stakes and intense competition within the sector.

Despite the remarkable success in its fintech ventures, MTN faced challenges in its core telecommunications business, with service revenue growth slowing to 6.8%.

Inflation and currency devaluation in key markets, particularly Nigeria, impacted profitability, highlighting the complexities of operating in diverse African markets.

As MTN continues to expand its fintech footprint and invest in infrastructure to enhance connectivity across the continent, it remains poised to capitalize on the immense potential of Africa’s digital economy.

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