Too many taxes can drive away investors – Telcos’ Chamber warns
The Ghana Chamber of Telecommunications is warning that the high level of taxation in the telecommunication sector could repel investors from bringing their funds to Ghana.
Parliament recently approved an increase in the communication service tax announced by the government in the midyear budget review.
During the presentation of the mid-year budget, the Finance Minister Ken Ofori-Atta said the increase in the Communications Service Tax (CST) from 6 % to 9 % will help in developing the foundation for the creation of a viable technology ecosystem in the country.
Speaking to Citi Business News, the Chief Executive Officer of the Chamber Kenneth Ashigbey urged the government to be mindful of the competing destinations for investments when introducing new taxes.
“The thing about taxation is the message it sends to investors. When you find the incidence of taxes being too high, the level of investors a sector like telecommunications will be able to attract declines.
It’s important that when we are applying these taxes we realize the fact that in as much as spectrum is important and we all own it, capital is also coming from capital places.
If as an investor I have to choose between markets where the taxation levels are low versus markets with high levels, where do you think my money will go to,” he quizzed.
Source: Citi News