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Executive Director of the Ghana Chamber of Telecommunications, Kenneth Ashigbey
The Ghana Chamber of Telecommunications has published a study indicating that the total fiscal contributions made by the telecommunications industry to support the country’s socio-economic development in 2019 was ¢ 3.2 billion GH.
This figure represents approximately 9.5% of Ghana’s basket of total annual income.
The most outstanding aspects of the study show that the communication services tax (CST) was ¢ 414 million GH; Value Added Tax (VAT), GH ¢ 480 million; Corporation Tax (ISR), GH ¢ 832 million; Withholding tax (WHT), GH ¢ 415 million; Import Duties, GH ¢ 210 million and the National Fiscal Stabilization Tax (NFSL) was GH ¢ 71 million.
The surcharge for international incoming traffic (SIIT) was GH ¢ 107 million in 2019. SIIT is the amount of six cents for each minute of call that comes from abroad to the country.
Mobile network operators pay that to the National Communications Authority (NCA), the industry regulator. There is also the distribution tax (PAYE), which stood at GH ¢ 96 million and finally the National Fiscal Stabilization Tax (NFSL), which is GH ¢ 71 million.
The NFSL was introduced in 2013 to stabilize the economy for a period of 18 months, until December 2015. This tax has been continuously renewed.
The study also shows that the mobile industry widely provides 6,700 direct jobs and more than 1.8 million indirect jobs, contributing 2.93% to GDP (non-oil), and invested GH ¢ 1.55 billion in capital expenditures during fiscal year 2019.
The Telecommunications Chamber noted that, despite the heavy tax burden, the telecommunications industry continues to commit funds to invest in capital expenditures to meet the needs for experience and quality of customer service.
“CAPEX investment has increased exponentially in the fiscal year, however, there is a need for a policy to support and enable even more investment from all players in the ecosystem to meet customer demand for mobile services,” said Dr. Eng. Kenneth Ashigbey, Executive Director of the Chamber.
The mobile industry believes that policy enablers such as tax reforms, tax rebates related to imported infrastructure and equipment could improve the affordability of mobile technology and services for customers, leading to further advancements for all long-term stakeholders.
Study data showed that the industry has more than 41 million active voice SIMs, 28 million active data subscribers, 14.5 million active mobile money customers, and more than 300,000 active merchants / agents.
The study further noted that, “an appropriate spectrum management framework [by the industry regulator] it will provide the necessary clarity to raise more funding for new and existing technologies, such as 4G and 5G, that require more policy guidance and support to grow. “
Dr. Ashigbey ultimately concluded that mobile devices are the most cost-effective way to expand access to ICT, the Internet in Ghana, as well as to further the digitization agenda that we are pursuing.
Therefore, it is critical to help the government achieve its goals of expanding ICT infrastructure, meeting last-mile goals, connecting the unconnected, and positioning the economy as a smart, digital market for further growth.
