Telecom industry contributes over GH¢9 billion in taxes

Telecommunications companies in the country contributed more than GH¢9 billion in taxes and other payments for 2023, a 50 percent increase over the GH¢6 billion paid in 2022.

These data are included in the Transparency Initiative Report – jointly released by the Ghana Chamber of Telecommunications and Electronic Money Issuers Chamber of Ghana.

Speaking at the report’s launch, Dr. Kenneth Ashigbey, Chief Executive Officer-Ghana Chamber of Telecommunications, said: “If you put together all the taxes we paid to government and other remittances made to its agencies in 2023, the total is GH¢9.8 billion.

It’s worth knowing that this contribution forms approximately 7.38 percent of the country’s total revenue, less grants”.

Touching on the various components making up total tax contributions, he said corporate income tax (CIT) contributed GH¢1.71 billion; value added tax (VAT) GH¢1.42 billion – while NHIL, GETFund, and COVID-19 levy brought in GH¢996.30 million.

The remainder are E-Levy, GH¢938.87 million; withholding tax (WHT), GH¢849.52 million; communication service tax (CST), GH¢636.83 million; import duties, GH¢609.68 million; PAYE, GH¢234.01 million; and other remittances GH¢2.01 billion.

Citing the report, he also stated that in 2023, telcos recorded 20.38 million active e-money customers, 505.12 thousand active agents, and GH¢.07 billion balance on float.

He added that the telecommunications industry’s capital expenditure for 2023 was GH¢4.3 billion.

“Regarding expenditure and investment, from 2013 to 2023, we have done GH¢18.1 billion – representing 4,241 percent. This is the amount of investment you need in order to ensure the network is everywhere and also that there is fidelity in the network’s quality,” he added.

On data affordability in Africa, he said the country is doing well as it ranks second among 12 countries on the continent: “If you take the African report, Ghana is number-2 among the top-12. Mauritius is the cheapest when it comes to data”.

To ensure the industry’s growth, he said, telecommunications companies must improve the quality of services they render to their customers.

He, however, said, despite the progress made, the industry has still not been able to match the rate at which it was growing before the E-Levy was introduced.