Telcos to charge 5% more from today

The five percent adjustment on tariffs by Telecom Companies operating in Ghana takes effect from today, Thursday, 1 November 2018.

The tariff modification has become necessary following the implementation of the new tax laws – VAT (ACT 970), NHIL (ACT 971) and GETFL (ACT 972).

The various networks are expected to send notification to their customers on the new charges beginning today.

A statement issued on behalf of Telecom companies by Mr Kenneth Ashigbey, Chief Executive Officer, Ghana Chamber of Telecommunications, said MTN, Vodafone and AirtelTigo, “who are responsible corporate entities, would comply fully with Ghana’s laws and ensure the distinction between VAT and the new levies emanating from their separate origins and basis in law”, adding that:

“As intended, the incidence of the two new levies will, thus, be on consumers and will result in the increase of the cost of telecommunication services”.

Read the full statement below:

NOTICE OF TELECOMMUNICATIONS TARIFF MODIFICATIONS FOLLOWING THE IMPLEMENTATION OF THE VAT (ACT 970), NHIL (ACT 971) & GETFL (ACT 972)

Accra, October 17, 2018 – The Ghana Chamber of Telecommunications on behalf of its members – AirtelTigo, MTN and Vodafone – wishes to notify its esteemed customers and the general public of tariff modifications following the implementation of the new tax laws.

The government, as part of the 2018 mid-year review of the budget amended the Acts referenced above.

The objective was to “give effect to the conversion of NHIL and GETFL into levies that are not subject to the input-output mechanism, and delinking them from VAT by removing the option of input tax deductibility,” thereby giving both levies a unique and different legal identity and distinguished from VAT.

Our members, who are responsible corporate entities, would comply fully with Ghana’s laws and ensure the distinction between VAT and the new levies emanating from their separate origins and basis in law.

As intended the incidence of the two new levies will thus be on consumers and will result in the increase of the cost of telecommunication services.

Customers of telecommunication services will be notified by their service providers prior to any changes being made and the expected changes will take effect on 1st of November 2018.

The telecommunications industry remains committed to full transparency and accountability to both the Government of Ghana and their customers.

Signed

Kenneth Ashigbey Chief Executive Officer Ghana Chamber of Telecommunications