Telecom tariffs to rise as from November in Ghana

Mobile operators Vodafone, AirtelTigo and MTN have recently declared an increase in the tariff of their telecom services as from November 1, 2018. According to the Chamber of Telecommunications of Ghana (GCT), this price change will take place following the introduction of new taxes by the government since August 1st.

A communication issued by Kenneth Ashigbey, CEO of the Ghana Chamber of Telecommunications, specified that, the reason of the review is 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.”

In July 2018, the Parliament has indeed changed the country’s fiscal policy. The National Health Insurance Tax (NHIL) and the Ghana Trust Fund for Education (GETFL), levied in the past in the value added tax, have become independent taxes.

NHIL was set at 2.5% as was the GETFL. VAT, it was imposed at the rate of 12.5%. Kenneth Ashigbey, the CEO of GCT, explained that these new taxes are clearly consumption taxes that have a definite impact on the cost of various products and services.

For the consumers, this price increase will further restrict their purchasing power. Seth Twum Akwaboah, executive director of the Association of Industries of Ghana (AGI), said that contacts have already been made with the Ministry of Finance to discuss a possible referral of new taxes in the budget law for the budget of Ghana 2019.