MTN Ghana Honours Tax Obligations To Gov’t; Pays GH¢3.1b

MTN Ghana says it has paid a total of GHS3.1 billion of its 2021 revenue of GHS7.7 billion to the Government in taxes.

It comprised of corporate taxes, Value Added Tax (VAT) levies and duties, withholding taxes, communication service tax, national fiscal stabilization levy, Pay As You Earn (PAYE), and payments to other government agencies.

The company said: “During the year, MTN made a fiscal contribution of GHS3.1 billion of which GHS2.8 billion was paid to government in direct and indirect taxes, representing 35.8 percent of total revenue.”

Dr Ishmael Yamson, Chairman of the Board of the company, said this during their just ended fourth Annual General Meeting since becoming a public listed company.

He said: “Creating shared value committed to being a strategic partner to Ghana’s development over the years, MTN has won various awards as the highest taxpayer in Ghana in recognition of its contribution to the fiscal development of the country.”

He assured shareholders of continued effective governance through adequate training and maintaining the right balance to ensure long-term growth of the business.
Thereby: “Living our purpose – bringing hope to communities within which we operate,” Dr Yamson emphasised.

“As a responsible corporate institution, we are committed to remaining at the forefront of delivering sustainable development to communities, especially in this era of the pandemic,” he added.

Meanwhile, the company declared 11.5 pesewas per share to its shareholders as dividend, an increase of 43.8 percent over what it paid to shareholders in 2020, and more than 70 per cent of its GHS2 billion profit for 2021.

In 2021, MTN Ghana recorded strong growth in service revenue (+28.5 per cent year-on-year) and managed its costs prudently, which led to growth in profit after tax of 43.5 per cent year-on-year to GHS2.0 billion.

Mrs Antoinette Kwofie, Chief Finance Officer of the company, stated that: “In 2021, the Group (Scancom PLC and Mobile Money Limited) delivered a total revenue and service revenue growth of 28.0 percent and 28.5 percent year-on-year (YoY) respectively to GHS7.7 billion.”

She added that: “This growth was underpinned by growth in data (up 56.3 per cent YoY), voice (up 4.9 per cent YoY), and Mobile Money (up 38.2 per cent YoY).”

She, however, indicated that the company’s digital revenue declined by 5.1 per cent YoY and it was due to a cleanup of the company’s digital products and services to enhance customer experience and rationalization of its digital products portfolio.

During the year under review, the company committed an amount GHS14.3 million towards Corporate Social Responsibility projects in education, health, entrepreneurship, and youth empowerment.

The MTN Foundation, the CSR arm of the company, for example, donated GHS5 million (bringing its total contribution to GHS10 million since 2020), to the National COVID-19 Trust Fund in support of government’s efforts to fight the pandemic.

By way of contributing to increased vaccinations in the country, the company donated 356,000 vaccines to the Government of Ghana through the Ministry of Health.

The Foundation extended its support to 465 students through the MTN Bright Scholarship Scheme, and disbursed GHS2.3 million to cover tuition, accommodation, and a stipend for books of beneficiaries.

The company noted that 119 beneficiaries had successfully completed their programmes and were now in the workforce, contributing towards the growth and development of Ghana in their own small ways.

In addition, the Foundation constructed a blood bank unit for the Cape Coast Teaching Hospital in Cape Coast, constructed a 600-bed girls’ dormitory block for Tamale Senior High School in Tamale and a 24-unit classroom block for the Ghana Police School in Accra.