why-we-signed-agreement-with-firs-on-telcos-transactions-–-danbatta

Why we signed agreement with FIRS on Telcos Transactions – Danbatta

Danbatta
•Prof Umar Garba Danbatta

…Assures that It won’t Affect QoS, Cost of service

By Emmanuel Elebeke

The Executive Vice Chairman of NCC, Prof. Umar Danbatta says the Commission went into settlement with the Federal Inland Revenue Service, FIRS on the transactions of the telecoms operators after it grew to become satisfied that it was not one other approach to tax telecoms Operators, who’re already coping with a number of taxation points.

He mentioned that the Commission additionally ensured that the mixing of the options with telcos’ transactions programs won’t, in any method, impression the fee and high quality of service supply by the Operators to telecoms shoppers.

As Regulator of the telecoms trade, is that we would have liked to ensure that it isn’t one other approach to tax telecoms Operators, who’re already coping with a number of taxation points. We have additionally ensured that the mixing of the options with telcos’ transactions programs won’t, in any method, impression the fee and high quality of service supply by the Operators to telecoms shoppers,” mentioned Danbatta.”

The Nigerian Communications Commission (NCC) had on Tuesday signed a Memorandum of Understanding (MoU) with the Federal Inland Revenue Service (FIRS) to make sure the tax company verify accuracy and completeness of worth added tax (VAT) parts and different taxes payable within the transactions of telecoms operators.

READ ALSO: FIRS seeks Lagos help to hit N8.5trn income goal

With the MoU, the FIRS will be capable of combine an software programming interface (API) expertise answer with the programs of telecom Operators for impartial verification of the quantity of VAT that ought to be paid by cell community operators (MNO) quite than relying fully on the Operators’ books of accounts.

Also talking in the course of the MoU signing ceremony in Abuja Danbatta, mentioned that diligence and applicable due processes have been undertaken  to conclude the MoU, because the Commission took its time to grasp the import of the MoU.

He due to this fact, assured telecoms shoppers and stakeholders that the mixing of FIRS answer with the Operators’ programs is fully to establish the accuracy of the VAT parts being paid by the Operators on their transactions and won’t, in any method, degrade the standard of service supply or result in excessive price of service to the shoppers.

On his half, the Executive Chairman and Chief Executive Officer, FIRS, Muhammad Nami, who recommended the NCC for accepting to collaborate with the tax company, mentioned the MoU is principally to establish completeness of tax transactions of cell service suppliers to the Federal Government because of the shift of bodily companies to electronic-based enterprise actions.

“The API, which was developed in-house, is transaction-based and all we are trying to do is to ensure we have the basis for determining the completeness and accuracy of VAT elements in telecoms transactions,” he added.

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