Gov’t Tax Imposition On Phone Importation Now 43%

Mobile Phone dealers in the country have expressed disappointment in the government for imposing huge taxes on their business. According to them, they have been unfairly treated by government. They disclosed that the initial tax imposition of 20% has hiked up to 43%, though government never informed them of the new tax measure. Speaking in an interview with Kwame Sefa Kayi on Peace FM’s flagship programme “Kokrokoo”, the Co-Chairman of the Mobile Phones and Accessories Association, Mr. Osei Agyemang and Nana Kakra, an Executive member, explained that the imposition of the new taxes on the importation of phones poses a threat to their business as they fear it may collapse their business. Nana Kakra expounded that the mobile phone dealers used to pay 10% tax on their products under the regime of former President Rawlings until the erstwhile Kufour administration totally removed it. Then, the NDC government re-imposed a 20% tax on their products in 2008 but unknown to them, the 20% shot up to 43%. “We were oblivious of the tax imposition. The memorandum was on Saturday but it was implemented on Monday. So, the government didn’t interact with us.” The mobile phone dealers in the country currently pay 15% of Valued Added Tax, 2% Special tax, 2% of Custom levy, 1% tax to the Internal Revenue Service, ECOWAS levy and other levies 1% respectively and to them, such levies adversely affect their products. “The phones become expensive, so it is difficult for people to purchase them. When the taxes hike up, then it promotes smuggling and theft.” They therefore appealed to government to review the tax system in order to revamp their business. “If government does not heed our pleas, hordes of people will be laid off from their jobs.”

Source: Ameyaw Adu Gyamfi/Peacefmonline.com