The levy of taxes on mobile money transactions rose to 250 million yen last year, according to a report from the Ghana Chamber of Telecommunications.
At the same time, the total telecommunications industry tax revenue for the government reached 3.6 billion yen in 2020, making it one of the major sectors contributing to government revenue.
Speaking at a knowledge forum, House research and communications official Derick Laryea said the 250 million yen is separate from other taxes the government collects from telecommunications companies.
Mr Laryea therefore argues that the industry cannot be overburdened with direct taxes on mobile money since it is already paying a huge sum to the government.
He said any direct tax on mobile money transactions would make it counterproductive.
“Based on the results of this study, the eight participating companies in 2020 made a total tax contribution of more than 3.6 billion euros in calendar year 2020. This represents the total taxes incurred, collected and other payments and remittances made to central government and other allied agencies, ”he told the forum.
The report also states that corporate income tax (CIT) on major tax lines was the most significant type of tax paid. This tax concerns the taxes borne by the members of the chamber.
The corporate tax rate is 25% and the industry has contributed 976 million yen in monetary terms, which is about 26.8% of the TTC. Value Added Tax (VAT) was the second of the industry’s main tax lines, accounting for around 15.1% of TTC, which in monetary terms amounted to over € 550 million.
This tax line, Mr Laryea said, although it is a passed-on cost and may be passed on to end consumers, imposes an administrative obligation on chamber members to administer, collect and return them. correctly to government.
The Communication Services Tax (CST) was also among the major tax lines in the study, accounting for 14.5% of TTC, which in monetary terms was over 525 million yen. This is an industry specific tax and was introduced in 2008 to generate additional revenue from communication services provided by telecom operators to their customers.
In 2013, the law was amended to further extend the scope of services subject to CST to include interconnection services, and in 2020 the rate of the call tax was reduced to 5%.
Other Product Taxes, Regulatory Fees, and Universal Service Fund (USF), which primarily consist of the 1% of annual net income, which must be paid to the National Communications Authority (NCA) on a quarterly basis and an additional 1% of the total income to be paid into an electronic fund set up by the government (GIFEC) was around 3.8% of the TTC, or 138 million euros. According to the study, these statutory payments are based on business turnover and are payable whether or not a business is making a profit.
Speaking at the same event, the director of tax audit of the audit and accounting firm KPMG, Gordon Dardey called for collaboration between government and telecommunications companies to share costs for tax collection purposes .
According to him, it could be part of the digital dynamic to increase national income.