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Saturday, July 13, 2013

Telecoms: Ghana to increase levy on international calls


Ghana is seeking to amend its Communications Service Tax law passed in 2008 to increase levies on international calls and data transmission using internet
The Amendment Bill, which was initially thrown out of the country's parliament by members for lack adequate consultation, is also seeking to address revenue loss as a result of loopholes in that regulation.
Meanwhile, the legislators and telecommunication industry players are sharply divided over the move, calling for a truncation of the process because consumers would be hard hit.
The minority group in parliament had cautioned the government about the move, saying it may be breaching international regulations if it goes ahead to tax the public for receiving international calls.
The government seeks to charge six cents on every minute of calls originating from outside Ghana. 
It says it is losing close to Ghȼ45 million ($22.1 million) every month due to irregular and fraudulent activities in the sector.
Telecom operators in the country are to allow the government access to monitor the accruing revenues and if a company refuses to pay the tax after the first 30 days, it will attract a penalty of 5 percent of annual gross revenue of the last audited financial statement. 
The national communication authority can withdraw the licence of an operator who fails to pay the tax after 90 days.
Opare Ansah, a lawmaker and an IT expert speaking to a local FM station in Accra, said telecom companies had prevailed in a High Court ruling on inter-connectivity and therefore, passing a bill on an illegality could be declared null and void by the Supreme Court.

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