Wednesday, April 24, 2024

Ghana: Telcos Pay Gh¢6 Billion Taxes to Govt in 2022

Players in the telecommunications industry have paid GH¢6.07 billion in taxes and other payments to government for the year 2022.

The amount is over 50 per cent increment of the GH¢4.02 billion paid in 2021.

The contributing telcos are AT, MTN, Vodafone, ATC, Helios, Comsys, CSquared, Ericsson, and Huawei.

This was made known by the Chief Executive Officer of the Ghana Chamber of Telecommunication (GCT), Dr Kenneth Ashigbey, at the launch of the 2022 Mobile Industry Transparency Initiative report held on Tuesday, November 21, 2023 in Accra.

According to Dr Ashigbey, the industry’s contribution constitutes approximately 8.02 per cent of the government’s 2022 tax revenue of GH¢75.71 billion per the 2022 annual report of the Ghana Revenue Authority.

The breakdown of tax contributions included Corporate Income Tax (CIT), GH¢1.27 billion, representing 42.6 per cent, valued added tax, GH¢ 923 million, and withholding tax GH¢697 million.

The rest are communication service tax, GH¢511.6 million and GETFund, NHIS and COVID-19 levies, GH¢768 million amongst others.

On the controversial electronic transfer levy (E-Levy), the Chamber said there was still the need for further revision in the E-levy rate to align it to government’s digital drive by default strategy.

“Our recommendation to the Ministry of Finance is to consider reducing the levy on transfer to 0.5 per cent and introduce a 0.5 per cent levy on cash-outs among other proposals,” the GCT said.