{"id":754751,"date":"2019-11-29T11:45:41","date_gmt":"2019-11-29T11:45:41","guid":{"rendered":"https:\/\/ghana-mma.com\/2019\/11\/29\/telcos-pay-ghc2-2bn-in-taxes-annually-telecoms-chamber\/"},"modified":"2019-11-29T11:45:41","modified_gmt":"2019-11-29T11:45:41","slug":"telcos-pay-ghc2-2bn-in-taxes-annually-telecoms-chamber","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2019\/11\/29\/telcos-pay-ghc2-2bn-in-taxes-annually-telecoms-chamber\/","title":{"rendered":"Telcos pay GHC2.2bn in taxes annually \u2013 Telecoms Chamber"},"content":{"rendered":"<p><\/p>\n<div>\n<div class=\"td-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"658\" height=\"644\" class=\"entry-thumb td-modal-image\" src=\"https:\/\/ghanamma.com\/wp-content\/uploads\/2019\/11\/20191127_232309-1.jpg\"   alt=\"\" title=\"20191127_232309 (1)\"\/><\/div>\n<p>Data on the contribution of telecoms operators to<br \/>\nnational development indicate that every years telcos pay GHC2.2 billion in<br \/>\ntaxes, which is almost 9% of Ghana\u2019s annual total revenue basket.<\/p>\n<p>Out of the total, Communication Service Tax (CST)<br \/>\ntops with GHC420 million, following by Value Added Tax (VAT), GHC413 million;<br \/>\nCorporate Income Tax (CIT), GHC343 million, Withholding Tax (WHT), GHC293<br \/>\nmillion and Import Duties GHC180 million.<\/p>\n<p>The rest are Surcharge on International Incoming<br \/>\nTraffic (SIIT) GHC155 million; SIIT is the quantum of six cents per every<br \/>\nminute of call that comes from overseas into the country. Telcos pay that to<br \/>\nthe National Communications Authority (NCA), who are, by law, allowed to spend<br \/>\nit and report to the Finance Ministry. <\/p>\n<p>There is also the pay-as-you-earn (PAYE) tax, which<br \/>\nstood at GHC64 million and finally the National Fiscal Stabilization Levy<br \/>\n(NFSL), which is GHC57million and paid by only MTN Ghana as the only telco that<br \/>\nmakes profit after tax in Ghana so far. <\/p>\n<p>NFSL was introduced in 2013 as a way of government<br \/>\nappealing to some leading companies in the country to help stabilize the<br \/>\neconomy over a period of 18 months, ending December 2015. But successive<br \/>\ngovernment keep renewing it.<\/p>\n<p>MTN has been appealing for a relief from the NFSL<br \/>\nfor many years now, but the current government has rather extended it for<br \/>\nanother five years in their 2020 budget.<\/p>\n<p>The telecoms chamber noted that, in spite of the<br \/>\nheavy tax burden, the telecom industry continues to commit investible funds<br \/>\ninto capital expenditure to meet customer service quality and experience need.<\/p>\n<p>Telcos provide 6,500 direct jobs, and over 1.6<br \/>\nmillion indirect jobs, contribute 2% of GDP, and invest GHC628 million capital<br \/>\nexpenditure every year. <\/p>\n<p>The Chamber however holds that some policy enabler<br \/>\nsuch as tax reforms to improve affordability of mobile technology and services<br \/>\nfor customers, will yield greater strides for all stakeholders in the long-term<br \/>\nwithin the economy. <\/p>\n<p>Currently, telcos in the country wield 37 million<br \/>\nactive voice SIMs, out of which and whopping 26 million also do data and 13<br \/>\nmillion are mobile money customers. In terms of coverage, they 87% 2G, 85% 3G<br \/>\nand a meager 6% 4G. <\/p>\n<p>This year, a chunk of the telecom spectra license<br \/>\nwill expire and government will be giving them a renewal fee to pay if they<br \/>\nwant to continue providing services in Ghana.<\/p>\n<p>Already, some operators and other industry players<br \/>\nhave invested heavily into 4G spectrum and are yet to recoup their investment,<br \/>\nas the market inches fast towards saturation level.<\/p>\n<p>Industry players have always argued that the price<br \/>\nof spectrum, as it relates to the nature of the Ghanaian telecoms market,<br \/>\npopulation size and other factors, is very high. But the regulator has always<br \/>\nstood its grounds on maintaining the prices that telcos complain about.<\/p>\n<p>The Telecom Chamber believes that going forward,<br \/>\n\u201cappropriate spectrum management framework [by the industry regulator] will<br \/>\nprovide needed clarity for more funding into existing and new technologies such<br \/>\nas 4G, which requires policy support to grow.<\/p>\n<p>The Chamber is proposing a technology neutrality<br \/>\npolicy, where telcos are allowed to re-farm existing used spectrum to deploy<br \/>\nhigher technology, instead of always having to go buy new spectrum from<br \/>\ngovernment to deploy new technology.<\/p>\n<p>They believe that would allow telcos to invest their<br \/>\nscarce resources into deploying the technology to benefit all stakeholders,<br \/>\nincluding government, in the long-term, rather than paying huge onetime license<br \/>\nrenewals fees to the state.\u00a0 <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Data on the contribution of telecoms operators to national development indicate that every years telcos pay GHC2.2 billion in taxes, which is almost 9% of Ghana\u2019s annual total revenue basket. Out of the total, Communication Service Tax (CST) tops with GHC420 million, following by Value Added Tax (VAT), GHC413 million; Corporate Income Tax (CIT), GHC343 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":754752,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-754751","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Telcos pay GHC2.2bn in taxes annually \u2013 Telecoms Chamber - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2019\/11\/29\/telcos-pay-ghc2-2bn-in-taxes-annually-telecoms-chamber\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Telcos pay GHC2.2bn in taxes annually \u2013 Telecoms Chamber - Ghanamma.com\" \/>\n<meta name=\"twitter:description\" content=\"Data on the contribution of telecoms operators to national development indicate that every years telcos pay GHC2.2 billion in taxes, which is almost 9% of Ghana\u2019s annual total revenue basket. 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