Ghana: 5% VAT Flat Rate Pushes Telecom Charges Up  

Ken Ashigbey, CEO, Ghana Chamber of Telecommunications

Accra, October 17, 2018// – The Ghana Chamber of Telecommunications on behalf of its members – AirtelTigo, MTN and Vodafone has increased telecom charges, following the implementation of the new tax laws namely 5% VAT flat rate and Ghana Educational Trust Fund (Amendment) Act, 2018 (Act 972) .

The new telecom charges are expected to take effect next month.

The government as part of the 2018 mid-year review of the budget amended the Acts referenced above. The objective was to “give 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.

To this end, in a statement the Chamber notified its esteemed customers and the general public of tariff modifications following the implementation of the new tax laws.

The Chief Executive Officer of the Chamber, Kenneth Ashigbey who issued the statement said: “Our members, who are responsible corporate entities, would comply fully with Ghana’s laws and ensure the distinction between VAT and the new levies emanating from their separate origins and basis in law”.

As intended the incidence of the two new levies will thus be on consumers and will result in the increase of the cost of telecommunication services, it added.

“Customers of telecommunication services will be notified by their service providers prior to any changes being made and the expected changes will take effect on 1st of November 2018.

The telecommunications industry remains committed to full transparency and accountability to both the Government of Ghana and their customers”, the statement said.

African Eye Report

 

 

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