Government’s airtime tax to become ad valorem tax

24 Jan 2008

The government of Ghana is proposing to change its controversial pay-as-you-go airtime tax to an ad valorem (according to value) tax, which could take the form of a sales or value added tax (VAT), following a consultation with the telecoms industry. Deputy Minister of Communication Mr Fred Opare-Ansah confirmed that its original airtime tax had proved unpopular with local operators and thus would prove difficult to implement. ‘We’ve had consultation with operators in the industry organised by the Ministry of Finance and at present everybody is happy with the current stage of negotiation,’ the deputy minister told Myjoyonline.com. He went on to say that the government is keen to ensure that operators’ revenues are not adversely affected when the new tax comes into effect in March 2008.

Ghana