Johannesburg-based MTN Group Ltd., Africa's leading wireless carrier, is currently evaluating a $72.6 million unpaid tax demand from Nigeria's Tax Appeal Tribunal. The company's Lagos-listed unit, MTN Nigeria Communications Ltd., which contributes to over a third of the group’s total revenue, is particularly impacted by these tax issues.
MTN Group has announced that it will address this matter in its trading statement scheduled for Friday, October 27th. This situation is not isolated but is part of a series of tax disputes involving major African mobile operators, including Vodacom Group Ltd.
Vodacom, led by CEO Shameel Joosub, experienced similar issues resulting in the sealing of offices and freezing of bank accounts. Prior to this, Nigeria had withdrawn a $2 billion claim against MTN Group, and Ghana also recently nullified a $773 million back-tax claim against the same company.
These recurring incidents have sparked discussions among telecom executives regarding the need for tax rationalization in the mobile industry through targeted fiscal policy reforms. One such proposed reform is the elimination of taxes on low-cost smartphones, as outlined in an agreement signed in Rwanda.
MTN Group, under the leadership of CEO Ralph Mupita, along with other telecom companies continue to navigate these complex tax disputes as they seek more favorable fiscal policies in their operational territories across Africa.
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