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BusinessTeleco industry contributed GH¢4.3 billion in taxes to government in 2021 -...

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Teleco industry contributed GH¢4.3 billion in taxes to government in 2021 – Report

The mobile telecommunication industry in Ghana paid taxes and other remittances worth GH¢4.3 billion to the government and other allied agencies in 2021.

This contribution forms approximately 7.7% of the government’s total tax revenue in 2021.

According to the Ghana Chamber of Telecommunications, GH¢722 million was in withholding taxes, GH¢657.4 million was accrued from Value Added Tax (VAT), and 571 million was in levies such as National Health Insurance Levy.

Again, the Chamber says Mobile Money is the key driver and enabler of Ghana’s cashlite and financial inclusion agenda.

“Beyond extending the reach of financial services, it provides huge employment formalizing the informal economy and support effective monetary policy transmission”.

In terms of jobs, the number of people directly employed in the sector is 6,100, whilst indirect jobs are estimated at 1.2 million.

Meanwhile, the growth in the number of active mobile money customers in Ghana has been declining since 2017.

With the overall decline in the growth trend over the period 2013 to 2021, it appears there is a saturation point for mobile money transactions.

In this regard, the Center for Economics Finance and Inequality Studies said any attempt at levying users would not drive usage and the anticipated revenue would be difficult to achieve.

“As the e-levy depends on value, the maximum of GH100 exemption per day, although protecting the poor, opens up the avenue for users of mobile money to schedule their transactions and use other strategies to avoid the payment of e-levy.” “For many, with the current e-levy of 1.50%, only low value “Mobile Money” transactions are affected,” it said.

Source: Ghanaweb 

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