- Total remittance of MTN to the Ghana Revenue Authority has Increased by 54% since 2021
Corporate Tax in Ghana has experienced a surge due to the sterling performance of South Africa’s telecommunication giant; MTN as the firm alone remitted ¢1.2 billion as taxes to the Ghana Revenue Authority.
This remittance during the first half of the year (January to June 2021) came through direct and indirect taxes, reaching a 54% growth over the same period in 2021.
Corporate Tax in Ghana: Breakdown of MTN’s Earning
In totality, MTN’s financial records revealed that it earned a total of ¢1.33 billion as profit in June 2022 with an increased service revenue of 28.9% year-on-year driven by growth in voice, data and Mobile Money (MoMo).
According to its 2022 half-year Financial Statement, it registered a ¢1.33 billion profit in June 2022, a 54% growth over the same period in 2021.
Voice revenue increased by 21.3% year-on-year to ¢1.6 billion. This is coming on the heels of an 11.6% year-on-year growth in its subscriber base.
Factors Responsible for the Revenue Increase
The successful run of the telecommunication giant is due to the increase in service revenue which reached a 28.9% year-on-year streak, especially with the recent diversification into fintech as led by Mobile Money (MoMo).
In the year under review, the company had reported capital investments of a whooping ¢1.1 billion to boost service quality and expand capacity and coverage on our network as well as the diligent execution of commercial strategies resulting in an increase in subscriber base, an increase in usage and engagement by our customers.
Still on the company’s trajectory to this feat, the company created a total of 255 sites for 2G coverage, 255 sites for 3G coverage and 935 sites for 4G coverage. This boost in 4G coverage also experienced an increase of 21.5% year-on-year to 97.2%.
As its fintech services continue to gain acceptance, MoMo users increased by 11% on a year-on-year basis.
MTN’s recent financial statement on the growth of its MoMo services states thus:
“Advanced services remain a pivot for MoMo growth as we continue to expand the portfolio of products in that category. There are products in the advanced piloting stage, and we expect these to be mainstream by the end of the year”
“We continue to monitor consumer reaction to the levy and have implemented a 25% fee reduction to lessen the impact of the levy on customers along with campaigns to educate customers on the e-Levy and changes implemented. We remain engaged with the government and other stakeholders to ensure the long-term viability of the Mobile Money industry”
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