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Telcos to review cost of services upwards

Written by  Oct 17, 2018
Following the implementation of the new tax laws, the Ghana Chamber of Telecommunications on behalf of its members have decided to review the cost of services upwards. This was contained in a statement issued by the the chamber on behalf of its members-AirtelTigo, MTN and Vodafone. The statement said: "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." Read below the full statement: 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.

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