Gov’t impose new communication tax

Government, through the National Communications Authority (NCA), will indirectly impose a new communication tax on telecommunication companies by creating a clearing house that will receive and direct all inter-connectivity calls of telecom companies in the country at a cost.

Cabinet has already approved of the creation of the clearing house which will be run by a private entity.

New Patriotic Party (NPP) Member of Parliament (MP) for Kwesimintsim, Joe Baidoe-Ansah, who disclosed this to BUSINESS GUIDE, said information available to him indicates that the government intends to ‘spring’ the tax on telecommunication companies who will eventually pass the cost onto the consumers.

According to the MP, who is also a member of the Parliamentary select committee on Communications, the move by Government will not only overburden the telecom companies but also create an avenue for another SUBAH to be created to the detriment of Ghanaians.

“This clearing house thing is a very serious issue because there is absolutely no need for it since telecommunication companies have directly been doing their own inter-connectivity without any charge,” he indicated, stressing that now telecommunication companies will have to pay to the clearing house for any call to be redirected.

The Kwesimintsim MP said stakeholders like the Ghana Chamber of Telecommunications, Wireless Applications Service Providers Association and the Internet Service Providers Association were not consulted by the government on the possible implications before the decision was taken.

“Already the telcos are paying Communications Service Tax, Corporate Tax and Fiscal Stabilisation Levy and the introduction of another inter-connectivity charge will definitely increase the cost of doing business in the country. This is unfair to telecom companies and Ghanaians in general,” he said, adding that stakeholders in the telecommunication industry should resist the introduction of this new creature.