5% Tax: NCC to charge fees for type approved devices, short codes

The Nigerian Communications Commission (NCC) says it will soon introduce registration fees on type approved telecommunication devices and short codes.

The NCC disclosed this at the opening of a three-day public inquiry on draft telecom regulations and guidelines review on Tuesday in Abuja, which came after President Muhammadu Buhari’s regime announced plans to implement a five per cent inclusive value-added tax (VAT) on telecommunication services.

NCC executive vice-chairman Umar Danbatta said the review became necessary due to current realities in the industry and to amend all five existing regulatory instruments to reflect current realities.

“The type approval regulations provide a framework for the approval of communications equipment for connection to communications networks in Nigeria. It is pursuant to sections 130 to 134 of the Nigerian Communications Act, 2003. The guidelines on short code operation are intended to prescribe a standard of practice for providers of short code services,” Mr Danbatta explained.

According to him, the guidelines will also provide a revised framework for the provision of these services and the protection against misuse.

“The third instrument being the guidelines on technical specifications for the deployment of communications infrastructure. The fourth instrument is the guidelines on advertisements and promotions. It provides minimum requirements and standards for promotional advertisements by licensed telecommunications operators in Nigeria,” stated the NCC boss. 

There is also the fifth instrument, which is the consumer code of practice regulations.”

“It is our expectation that this review will improve the standards and procedures for type approvals, operation of short codes and advertisement and promotions,” Mr Danbatta noted.

(NAN)