‘Phone airtime tax needs discussions' further discussions’

Page 16, Dec 14, 2007
Story: Emmanuel Adu-Gyamerah

THE Parliamentary Select Committee on Communications has suggested that the proposed excise tax on phone airtime should be subjected to further discussions towards a national consensus and sufficient sensitisation.
The committee said in response to the government’s proposal to impose the excise duty per minute on airtime use, telecom operators submitted an industry position paper to it for consideration.
A report of the committee on the 2008 budget estimates for the Ministry of Communication said a meeting was subsequently held with telecom operators, which was attended by the Deputy Minister of Finance and Economic Planning, Professor George Gyan-Baffour.
It added that members of the committee expressed diverse views on the merits and practicability of the proposal and also noted concerns expressed by the general public.
“In the light of these difference, the committee is of the view that the introduction of the measure, despite its immense revenue potentials should be subject to further discussion towards a national consensus”.
The report added that the committee would furnish the details of its discussion and recommendation to the House for its decision.
On the privatisation of Ghana Telecom and Westel, the report stated that efforts are being made by the ministry to create a sustained competitive market structure.
It said negotiations were underway with some companies for the sale of 66.6 per cent share of the GT.
With regards to Westel’s privatisation to inject capital into the company to make its operation competitive through the sale of 75 per cent share is nearing completion.
According to the report total access fixed line lines grew from 248,940 in 2001 to 364,918 this year while mobile phone subscription increased from 215,921 in 2001 to 7,016,707 as at September, 2007.
Telephone penetration rate as at September, 2007 stood at 33.7 per cent from a 2006 figure of 20 per cent, the report indicated.
The House unanimously approved GH ¢18,518,487 for the operations of the ministry for the 2008 fiscal year.