Ghana: GSMA Calls On African Governments To Stop Extra Taxation On Telecoms Sector -Reports
6 September 2019
Akinwale Goodluck, the Head of GSMA Sub-Saharan Africa, has reiterated calls on African governments to stop imposing extra taxes on the telecoms sectors.
According to him singling out the telecoms sector for taxation has the potential to retard the growth of the entire industry.
At the recently concluded second Mobile Money Stakeholders Forum held in Accra, Ghana, Goodluck used Uganda as an example and said that burdening the telecoms industry with taxations could destroy the sector.
In July, last year, Uganda’s government started implementing a new tax of 1 per cent on all transactions on mobile money platforms. After several protests from the public, Uganda’s parliament in October approved a downward review of the tax on mobile money transactions from 1 percent to 0.5 percent.
Despite the 0.5 percent adjustment, Uganda’s telecom industry suffered the most, and according to reports by the Uganda Communication Commission, internet subscriptions dropped by more than 2.5 million users and the value of mobile money transactions, also declined by trillions of Ugandan Shillings.
Although Ghana’s government, has denied having any intention to impose additional taxes on the telecoms sector, other stakeholders and industry observers fear that the government may use other indirect and cunning methods to tax the system.
The Head of GSMA for Sub Sahara Africa declared that he wants African governments to see the telecom industry as an enabler of every economy, therefore, in his opinion, adding more taxation to the sector would discourage the consumers.