MTN’s Ghs 2.6 billion tax payment accounts for 6% of total tax revenue in 2020
Telecom giant, Mobile Telephone Network (MTN) Ghana, says it paid some Ghs 2.6 billion in taxes for last year.
According to the Chief Executive Officer (CEO) of the telecom, Selorm Adadevoh, taxes paid by the company accounted for 6 percent of total taxes collected by government for 2020.
The GRA for the year 2020, was able to mobilize total tax revenue of Ghs 45,338.69 million as against a revised target of Ghs 42,769.50 million for the year despite the impact of the Covid-19 pandemic on tax payments by individuals and businesses.
The Ghana Revenue Authority (GRA) exceeded its tax revenue collection target for 2020 by some Ghs 2.5 billion.
“We are a responsible company and we pay our taxes when they are due, last year we contributed to about 6 percent (Ghs 2.6 billion) of total taxes collected in Ghana,” stated the CEO during a presentation at the 25th Anniversary Edition of MTN’s Annual Editors Forum on Friday, August 20.
In 2019, total taxes and payments to government by all the telcos in the country amounted to over Ghs 3.2 billion.
This figure represents approximately 9 percent of Ghana’s annual total tax revenue earnings.
With MTN Ghana now paying up to 6 percent of total tax revenues, the sector’s share of total tax revenues is expected to be higher in 2020.
Speaking further at the Forum, Mr Adadevoh also noted that, the company had contributed over Ghs 100 million to the National Fiscal Stabilisation Levy (NFSL) Fund, representing about 20 percent of the Fund’s total worth.
“We have paid over Ghs 100 million towards the NFSL Fund, and we’ve seen the Fund being used as part of Covid management instrument of government and our contributions form 20 percent of the Fund,” he stated.
The NFSL applies to specified companies and institutions to raise revenue for fiscal stabilisation of the economy. The NFSL is 5% on the profitbefore tax on specified companies. The specified companies and institutions include: Banks, Non-bank financial institutions, Insurance companies, Telecommunications companies liable to collect and pay the communications service tax (CST), Shipping lines, maritime and airport terminals.
“We have also paid over Ghs 380 million in communication service tax in 2020. This represents 70 percent of total CST, and you see tax payment obligations are very important to us because it’s one of the ways we can contribute to the economic development of Ghana,” he added.
Meanwhile, MTN Ghana says it has adopted a new and effective way of curbing the incessant acts of mobile money fraud in the country.
According to the company, the new measure adopted will disincentivise fraudsters given the cost implication of the new measure.
Speaking on the new measure adopted by the company, Mr Adadevoh noted that when a fraudster commits fraud with a particular cell phone, the cell phone within a few hours will be blocked across all networks in the country rendering the phone useless and as such to make use of any network in the country, the fraudster has to buy a new phone.
“So far we’ve all seen and I’m sure you can attest that the complaints of MoMo fraud has gone down and this is due to a number of things we have done like collaborating with our partners the Ghana Telecoms Chamber. Together we have formed an alliance and created a barrier that makes being a fraudster very hard.
“So what we’ve done is that today if you commit fraud with a particular phone, that phone within a matter of hours will be blocked across all networks in Ghana, not the SIM but the phone. So if you are a fraudster what that means is that you will keep buying phones and that’s very costly,” he stated.
“In addition to that, we are working with the Ghana Police Service to arrest fraudsters so they go through the prosecution process,” he noted further.
