Telecom
Ghanaian Phone Dealers Oppose 20% Sales Tax
Phone dealers in Ghana are protesting at the government’s decision to impose a 20 percent tax on the sales of mobile phones. Mobile phones had been zero rated for tax until now.
Simon Fiaku, secretary of the ‘Tip Toe Lane’ Traders Association and spokesman for the Coalition of Mobile Phone Traders and Importers in Ghana, told a press conference that this new tax would drive away investment and lead to a rise in smuggling.
‘It will defeat the purpose of revenue generation by the government.” he warned. The government is looking to raise around $23.8 million per year from the new tax.
Other representatives warned that consumers forced into buying smuggled phones to save money would then lose out on after-sales warranties if the handsets broke down.
The tax was approved by Parliament, but is still waiting to be signed by the President.