The Chief Executive Officer (CEO) of the Ghana Telecommunications Chamber, Kenneth Ashigbey, has said that the financial constraints brought on by government taxes and other levies, has led to the decision by Airtel-Tigo, MTN and Vodafone to increase tariffs.
He explained that the telecommunication networks after the implementation the newly re-calibrated VAT, NHIL and GETFUND levies, has no option than to pass on the cost impact to its customers.
Speaking on the Citi Breakfast Show, Mr. Ashigbey explained further that the impact of government’s decision forced the telcos to adjust tariffs upward in order to stay competitive.
“The Telcos are just applying the law as it was passed in all their service… This is an industry that pays close to 40% of its turnover to the government in terms of taxes and fees in other forms”.
“The industry is highly taxed; you need to be able to be competitive as a business to be able to attract the capital and the investment to be able to expand the services, the under-served and unserved communities. You need to ensure the sustainability of the industry and also to contribute to the development of the country as an industry.”
The government as part of the 2018 mid-year budget review in July separated the National Health Insurance Fund Levy and the GETFund component from the old 17.5% Value Added Tax (VAT) regime, thereby making the two components straight levies of 2.5 percent each.
Ghanaians to pay more for MTN, Vodafone & AirtelTigo services
Barring any last minute changes, Ghanaians will from November 1, 2018, start paying more for the services rendered by the telcos.
The Ghana Chamber of Telecommunications which made the announcement in a statement, said the increment is in accordance with the implementation of the new tax laws.
The Chamber said “customers of telecommunication services will be notified by their service providers prior to any changes being made”
By: Jude Mensa Duncan/citinewsroom.com/Ghana