Telcos To Increase Service Charges

Ken Ashigbey

Telecommunications companies in the country have announced plans to increase charges for the various services they offer to the general public, following government’s implementation of the Value Added Tax (VAT), Act 970, National Health Insurance Levy (Act 971).

Ghana Chamber of Telecommunications made this known in a notice signed by its Chief Executive Officer (CEO), Kenneth Ashigbey.

It said the expected changes in tariffs will take effect from November 1, 2018.

“The Ghana Chamber of Telecommunications, on behalf of its members – AirtelTigo, MTN and Vodafone – wishes to notify its esteemed customers  and the general public of tariff modifications following the implementation of new tax laws,” according to the notice dated October 17, 2018.

Government, as part of the mid-year review of the 2018 Budget, made amendments to the above acts, with the objective of giving effect to the conversion of NHIL and GETFL into levies that are not subject to the input-output mechanism.

“Our members, who are responsible corporate entities, would comply fully with Ghana’s laws and ensure the distinction between VAT and the new levies emanating from their separate origins and basis in law,” it said.

As intended, the incidence of two new levies would thus be on consumers, and would result in the increase in the cost of telecommunication services, the Chamber said, adding that customers of telecommunication services would be notified by their service providers prior to any changes being made.

By Melvin Tarlue

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