Tuesday, November 20, 2007
Ghana: Is Tax On Mobile Phone Use Justified? - AllAfrica.com
In his budget statement presented to Parliamanet last hebdomad Thursday, the Curate for Finance, Hon. Kwadwo Baah Wiredu stated that the authorities had decided to relinquish duties and value-added taxation on all imported mobile telephones and replacement them with excise tax duty on telephone calls made by mobile telephone subscribers.
The ground cited for the determination was that mobile phone importers through smuggling have got got been evading tax they ought to have paid to the state. With this new decision, the cost of mobile telephones would go relatively cheaper on the marketplace because the taxation component have been removed. Since this announcement, there have been amalgamated reactions from the public, especially, mobile telephone users.
In order to have got an aim treatment on the subject, two critical issues must be considered. One, gross mobilisation and two, checking of smuggling.The finance curate in explaining the principle behind the government's determination to taxation users of mobile telephones said most importers had evaded taxation on telephones in the past. If this was indeed so, The History then would wish to submit that the authorities have got it all wrong.
Our authorities have a constitutional duty to mobilise gross for the development of the country. It also have the championship of the law to guarantee the involvement of the state by arresting and prosecuting those who would seek to beat on the authorities or the state.
With the championship of the law, if people still hedge tax, it intends that authorities have failed to set the necessary chemical mechanisms in topographic point to check up on the practice. It is therefore the position of The History that authorities cannot base on balls on her inefficiencies to the public. The authorities have the security setup firmly in its control.If something travels incorrect somewhere it should be the concern of the authorities and it should not seek to go through such as laxness on to the general public.
The History postulates that if the lone determination being taken by authorities is to taxation users of mobile phones, then the whole thought must be shelved. Government must accept her guiltiness that it have failed to implement our taxation laws in the state after convincing Ghanaians that she was capable of handling all sectors of the economy.
On the other hand, if the thought was meant to bring forth more than revenue, the authorities should be bold to state Ghanaians. Taxes, all over the human race are used in developing countries. Every authorities therefore have a duty to happen new ways of generating revenue.
We are aware that the public have reacted negatively to the thought but we at The History believe that it is a good 1 that must not be thrown overboard. Considering the charge per unit at which Ghanaians are using mobile phones, it would be prudent for endorsers to be taxed in order to bring forth more than gross for the country.
Ghanaians desire almost everything but are always afraid to pay taxes. Europe and United States have got go what they are today because of taxes. They pay taxation and then acquire the excess to us in Africa in the word form of assistance or loans.
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Why can't we also make same? Of course, in espousing this we are also aware of the high unemployment charge per unit in the country.
Besides, mobile telephones are used in all corners of the state by both the rich and the poor. To enforce taxation on its use would therefore convey untold adversity to those in the low-income bracket. We therefore suggest that the first 1 or two proceedings of talking clip should be tax-free. Taxes should thereafter be imposed.
We also submit that the taxation should not be unvarying but rather be on the more-you-talk the more-you-pay basis. By so doing, it would salvage those in the low-income bracket any adversity as already suggested. If the individual make up one's minds to speak beyond the saving grace period, then he or she is no more than a low-income earner and should be prepared to pay the appropriate tax.
Labels: budget statement, critical issues, excise duty, finance minister, importers, Mobile Phone, mobile phone subscribers, mobile phone users, Mobile phones, mobilization, reason
