The Ghana Chamber of Telecommunications has revealed that telecommunications companies in the country have contributed GH¢9.83 billion in taxes and other payments in 2023.
This marks a significant boost to the national revenue base, representing an impressive 50% increase compared to the GH¢6 billion generated in 2022.
The industry has also contributed 53.2 percent of the nation’s GDP and gained GH¢22.79 million in mobile money financial services, generating a GH¢18.33 billion balance on a float for banks.
These figures were captured in the Transparency Initiative Report, a joint release from the Ghana Telecommunications Chamber and the Electronic Money Issuers Chamber of Ghana.
Speaking at the report launch in Accra, Ing. Dr. Kenneth Ashigbey, CEO of the Ghana Chamber of Telecommunications, emphasized the industry’s commitment to driving economic growth despite the challenges the sector faced.
He said the telecommunications industry is the most driving force of the country and, therefore, there must be reforms in taxing the telecom industry and also providing physical services to ensure the industry contributes significantly to the economy.
He said the taxes and regulations on the industry are driving investors and fintech companies away, hence, he called for the government’s intervention to prevent these evacuations.
“When they leave, it brings about loss of jobs and revenue for the country”, he added.
He reiterated that the telecom industry remains a critical pillar in Ghana’s economic development, and therefore must be prioritized as many businesses and institutions depend on it.
Speaking on the cost of data, he said Ghana was ranked second as the most affordable data provider yet citizens are grieved about the cost of data.
He explained that the cost of levies and Value Added Tax in the rendering of services by telcos was hindering its affordability.
Therefore, he assured citizens that the Chamber was working hand-in-hand with the government to make data affordable for everyone by reducing taxes and investing more in the sector.
Dr Ashigbey said fiber cuts have been rampant in the country and causing network failures and expensive services, addressing this, he said that his outfit has engaged the Ministry of Roads and Highways to ensure the prevention of fiber cuts during road constructions.
Adding that, the Police Service and the Judiciary Service have been involved to ensure private and public individuals who are caught cutting fibers are prosecuted.
Despite all the challenges facing the industry, the sector has also provided 2,464 direct jobs in 2023, though this is slightly lower than the 2,600 jobs created in 2022.
Mr William Demetia, Director at Arete Solicitors, advised the chamber to give an alternative to the ruling government to ensure effective revenue generation and not scrapping of taxes as some political parties are campaigning for.
He said the government must expand infrastructures and invest in the telecommunications sector to enable more people to pay their taxes for greater services.
He said there must be a concession as part of the activities of the telco industry to enable the chamber to regulate its operations.
The Ghana Chamber of Telecommunications is an industry association and a private initiative by the mobile network operators in Ghana. It is an advocacy institution established to help direct telecommunications policy, legislation and regulation, and pursue research towards the development of the telecommunications ecosystem.
