MTN protests shutdown of its facilities by Kogi govt

MTN Nigeria on Friday expressed dismay over the shutdown of its base transmitting facilities by the Kogi State Internal Revenue Service (KGIRS) over alleged tax default. Daily Trust reports that the Kogi State Internal Revenue Service (KGIRS) had yesterday shutdown MTN Nigeria’s facilities over failure to pay tax obligations to the tune of N120 million […]

MTN Nigeria on Friday expressed dismay over the shutdown of its base transmitting facilities by the Kogi State Internal Revenue Service (KGIRS) over alleged tax default.

Daily Trust reports that the Kogi State Internal Revenue Service (KGIRS) had yesterday shutdown MTN Nigeria’s facilities over failure to pay tax obligations to the tune of N120 million to the state government.

But in a statement by the telecommunication giant today, it stated that the state government is demanding for immediate payment of Social Service Contribution levy, Employee Development levy and annual rent for Right-of-Way on fibre optics cable.

According to Tobechukwu Okigbo, MTN’s Corporate Relations Executive, the Taxes and Levies Act which introduces the Social Service Contribution and Economic Development levies mandates the Joint Tax Board to recommend chargeable fees which will be subject to the Minister of Finance’s approval.

“To the best of our knowledge, the Minister of Finance’s recommendation as provided in the Act is yet to be issued, and as such, it is unclear if the imposition of the fee by the Kogi State Government is on solid legal footing.

“As a responsible corporate citizen, we accord the highest priority to our sub-national tax commitments.

“We wish to state that we have met in full all our tax obligations to the Kogi State government and are not in arrears,” he said.

He added: “On request, we have furnished the KGIRS on multiple occasions with documentary evidence proving our full compliance with extant state laws on the matter.

“At this stage, the demands of the KGIRS, if honoured, amounts to multiple taxations and the arbitrary shut down of our base transceiver stations and harassment of our partners will stand in the way of a reasonable resolution.”

The telecom service provider said it regrets the disruption of services to its customers in Kogi and some neighbouring states.

“MTN Nigeria remains fully committed to working with the Kogi state government and the relevant regulatory authorities in reaching a timely and lasting solution,” the statement added.