MoMo contributed GHC250 million as tax revenue in 2020

The report also showed that in the same period, the telecom industry’s total tax revenue to government was ¢3.6 billion.

This, the Head of Research and Communications at the Chamber, Derick Laryea says makes the telecom industry one of the biggest contributors to government revenue.

He also noted that the ¢250 million is different from other taxes the government collects from telecommunication firms.

Mr. Laryea however, urged the government not to overburden the sector with direct taxes on Mobile Money because MoMo transactions and operations are already paying huge sums to the government.

He said any direct tax on mobile money transaction will make it counterproductive.

“Based on the results of this study, the eight participating companies in 2020 made a total tax contribution of over ¢3.6 billion in the 2020 calendar year. This represents total taxes borne, collected and other payments and remittances made to central government and other allied agencies” he said at a Knowledge Forum.

The report also indicates that, Top Tax Lines Corporate Income Tax (CIT) constituted the largest tax type paid. This tax relates to taxes borne by the members of the chamber.

Corporate income tax rate is 25% and the industry contributed in monetary terms ¢976 million, which represents approximately 26.8% of the TTC. Value Added Tax (VAT) was the second of the top tax lines of the industry, representing approximately 15.1% of the TTC, which in money terms was over ¢550 million.