The Consumer Protection Agency (CPA) has faulted parliament for the tariff increment announced in the telecommunication sector.
The Ghana Chamber of Telecommunications Wednesday announced on behalf of its members—AirtelTigo, MTN and Vodafone tariff increment following the implementation of the “new tax laws.”
According to the chamber, the tariff adjustment which will take effect on 1 November aims at giving “effect to the conversion of NHIL and GETFL into levies that are not subject to the input-output mechanism, and delinking them from VAT by removing the option of input tax deductibility,” thereby giving both levies a unique and different legal identity and distinguished from VAT.
Commenting on the development, the Chief Executive Officer (CEO) of the CPA, Kofi Kapito said the telcos cannot be blamed for the proposed tariff increase, instead, the parliament should be blamed for endorsing the government’s tax plans without considering the plight of the average Ghanaian.
“Whatever that they [telcos] are going to review is in relationship with tax, a tax that they need to collect for government of Ghana. If my understanding is the right thing, I don’t think I would blame them or disagree with them because they are not in the business of doing charitable event. They are here to make profits,” Kapito told Starr News.
He added: “I don’t think it is to do with the telcos. It is the government of Ghana or our representatives, MPs who represent us in parliament because every law that’s made in Ghana is for the people of Ghana. So it is the tax review that is going to affect the pocket of the consumer or the people of Ghana. I think we should look at how the debate went on at the committee level and on the floor of parliament.
“Remember taxes and levies can only be imposed if they are approved by parliament which you have a representative as your MP to serve your interest.”
“At this point, I don’t think it will be fair for me to accuse or blame the telcos.”