• About Us
  • Contact Us
Account
GTB
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
No Result
View All Result
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
No Result
View All Result
Account
Ghana Talks Business
No Result
View All Result

This is how much Ghana’s telecom sector contributes in taxes to the economy

02/12/2019
Reading Time: 3 mins read
Ghana's telecom sector taxes, ghanatalksbusiness.com
405
SHARES
Share on FacebookShare on TwitterShare on WhatsApp

Finding from a total tax contribution (TTC) survey by the Ghana Chamber of Telecommunications reveals significant contribution of the telecom sector towards Ghana’a economic growth

Total Taxes and Payments for 2018

The data reveals that the sector’s total taxes and payments to government amounted to GHC2.2 billion in 2018. The Chamber used a total tax contribution methodology to measure total cash payments for business operations by its members over the period. Tax components include corporate income tax, Value Added Taxes, Communication Service tax Withholding taxes, and Import duties and other surcharges, and social security contributions.

The total contributions of GHC 2.2 billion represents approximately 9 percent of Ghana’s annual total tax revenue earnings. CEO of the telecoms Chamber revealed the figures at a media briefing. Thus the telecom sector contributes notably in taxes to Ghana’s economy.

Breakdown of Tax Components

From the data, Communication Service tax (CST) tops tax contributions with GHC420 million, averaging 19 percent of total contribution. Secondly, Value Added Tax (VAT) contributes GHC413 million, averaging 18 percent of total contributions.

Also, Corporate Taxes are in third place with a total of GHC343 representing approximately 16 percent of total contribution. Then, another tax component with notable contribution is the Surcharge on International Incoming Traffic (SIIT) with contribution of GHC155 million. The SIIT is the total value of six cents per every minute of call that comes from overseas into the country.

Additionally, other products taxes, regulatory fees and the universal service fund, mainly consists of one percent of annual net revenue. Telecom operators usually pay such fees to the National Communications Authority on quarterly basis. They also pay an additional one percent of annual net revenue into an electronic fund set up by the government (GIFEC). Total contribution of these fees for the period was approximately GHc114 million.

Statutory payments according to Mr. Ashigbey, are based on businesses operations and are payable whether a business makes profit or not.

The survey also states that the total 0.07 percent tax contribution of mobile financial services (MFS) to the tax contribution is about GHc15.1 million. These are mostly withholding taxes (WHT) on commissions to merchants and MFS engagements with suppliers, distributors among others.

The findings further indicate that the telecoms industry has about 6,500 employees. Also Government receives approximately GHC64 million Pay As You Earn taxes from operators annually.

Contribution to the economy

Figures indicate notable contribution by the telecom’s industry to the economy of Ghana. This is in terms of taxes and also employment to the people of Ghana.



Previous Post

Minister advocates for Pension Funds to Finance the Housing Sector

Next Post

Some Staff of Bank of Ghana sanctioned for involvements in banking sector crises

Related Posts

spectrum

COVID-19: Ghana Gov’t gives Telcos free spectrum for 3 months to meet data needs

15/04/2020
huawei_google, huawei can become no 1 without google, ghanatalksbusiness.com

HUAWEI can be no.1 in smartphones without Google

26/11/2019
Kenneth Ashigbe, Chamber of Telcos, ghanatalksbusiness.com

Telcos seek audit proof for alleged tax under-declaration

21/11/2019
Murthy Chaganti, Airteltigo, ghanatalksbusiness.com

AirtelTigo names Murthy Chaganti as new Chief Executive Officer

18/11/2019
vodafone_ghana

Vodafone Ghana announces big broadband packages

29/10/2019
vodafone_zambia

Zambia cancels licence of Vodafone franchise holder citing poor capacity

29/09/2019
Next Post
banking sector crises, ghanatalksbusiness.com

Some Staff of Bank of Ghana sanctioned for involvements in banking sector crises

GRIDCo STRIKE, ghanatalksbusiness.com

GRIDCo staff demonstrate on unpaid debts, gives ultimatum to management.

  • About Us
  • Disclaimer
  • Privacy Policy
  • Advertising
  • Contact Us

© 2021 Ghana Talks Business

No Result
View All Result
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
  • Login

© 2021 Ghana Talks Business

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In