Telecom sector contributes GHS 6 billion in taxes

The telecommunications industry disbursed a notable GHS 6.07 billion in taxes to the government and associated agencies during the course of 2022, as unveiled by the 2022 Mobile Industry Transparency Initiative. These financial contributions encompass GHS 1.27 billion in Corporate Tax, GHS 9.22 million allocated to Value Added Tax, and GHS 482.8 million designated as the Electronic Transfer Levy (E-Levy).

This formidable financial infusion, accounting for approximately 8.02% of the Government of Ghana’s 2022 tax and revenue pool, underscores the telecommunications sector’s pivotal role in sustaining public finances.

The report further delineates the industry’s economic significance, citing a 2.27% contribution to the Gross Domestic Product (GDP) in 2022. Additionally, the telecommunications sector played a substantial role in funding the Ghana Revenue Authority, providing 7.28% of its resources.

Amidst this financial narrative, the mobile financial services sector emerges as a key player, boasting 20.38 million active e-money customers in 2022. The report posits mobile money as a cornerstone for Ghana’s cashless initiatives and financial inclusion agenda, playing a dual role in extending financial services and fostering formalization within the informal economy.

According to Dr. Ing. Kenneth Ashigbey, Chief Executive of the Telecom Chamber, the Telecom Chamber expected some tax reliefs for manufacturers of mobile devices in the 2024 Budget presented by Finance Minister, Ken Ofori Atta.

Dr. Ing. Kenneth Ashigbey noted the industry needed this cushioning considering the fact that the telecommunications industry is contributing heavily towards revenue generation through the use of mobile services. He spoke at the launch of the 2022 Mobile Industry Transparency Initiative.

Source:norvanreports