Business News of Thursday, 8 August 2013
Source: Joy Online
Mobile telephone producers that have operations inside Ghana have hinted which they might heighten the costs of cell phones when government didn't scrap the newly introduced 20% import taxes about mobile handsets plus accessories.
Representative of a few of the producers told ADOMBUSINESS inside separate interviews they wouldn't be capable to absorb the taxes about behalf of customers thus the handset costs usually undoubtedly increase when they commence paying the taxes.
The 20% import taxes about phones plus accessories was 1 of numerous lately introduced taxes inside Ghana, that has incurred thick public criticism.
What is specialized regarding the handsets import taxes is the fact that it utilized to be inside force however, was changed with all the 6% Communication Service Tax (CST), otherwise recognised as speak taxes, that is borne by telecom service offer about behalf of clients. But this government has brought back the import taxes to not substitute the speak taxes, nevertheless to incorporate about into it.
Whereas the telecom providers agreed to absorb the speak taxes about behalf of shoppers, the telephone producers plus dealers have reported categorically they cannot absorb the 20% import taxes inside addition 15% VAT plus alternative charges at the port.
Meanwhile, there are unconfirmed reports which amidst of protests, government had absolutely instructed the relevant revenue agencies to commence apply the 20% import taxes from August 3, 2013.
Head of Hand-held Products for Samsung West Africa, Jaspreet Singh told ADOMBUSINESS “if the implementation has started you might do not have choice than to pay yet which might signify costs of the handsets might undoubtedly rise shortly considering you cannot absorb the taxes.”
He explained which no player inside the industry is creating profit margins about 35% thus it wouldn't create company sense to absorb 20% import taxes inside addition to 15% VAT.
Singh noted which the taxes came unannounced plus which was not fair to industry players considering they might have expected government to consult those to discuss the implementation program and just how to avoid smuggling plus alternative escapades which may kill the industry before implementation.
“I hope government has devised a method to avoid smuggling considering none of you the industry players will enable ourselves to be downside,” he mentioned.
He moreover debunked allegations which Samsung planned to move from Ghana, suggesting which there are long-term plans to establish an assembling plant inside West Africa yet the newly introduced import taxes is not a element because program considering government didn't provide a hint it was coming.
Key Accounts Manager at TCT Ghana, importers of Alcatel phones, Robert Oduro furthermore told ADOMBUSINESS government could have supply help for the industry players to bear the shocks before introducing the taxes, “unless government would like to stifle the handset industry.”
He noted which the taxes would affect the amount of phones imported into the nation plus therefore affect supply, that might inadvertently grow the cost of handsets plus affect the ability of the telcos to subsidize handsets for their consumers.
Oduro mentioned the taxes threatens to distort the budgets of the telephone businesses considering it was announced at a time whenever each organization had shut their budgets for the year.
“Does government need just 1 surrounding handset organization – RLG – to take pleasure in the marketplace? RLG is absolutely enjoying a great deal of taxes vacations plus this attempt to kill all others inside favour of RLG is not fair to Ghanaians,” he mentioned.
However Oduro is not alone about this problem regarding government attempt to safeguard RLG, because the Concerned Phone plus Accessories Dealers of Ghana moreover reported at their hit meeting which the taxes is made to safeguard RLG, that imports telephone components from China plus assembles inside Ghana.
Meanwhile, Huawei Ghana is moreover unhappy regarding the import taxes, suggesting inside an exclusive write as much as ADOMBUSINESS it had plans to be a marketplace leader inside the supply of standard plus affordable smartphones however, the import taxes threatens to derail which dedication.
“Huawei has because last year introduced regarding five new plus affordable smartphones inside Ghana plus was lookin at launching a limited more equipment shortly [but] with this taxes about handsets, it really is probably to strengthen the final marketplace cost of the equipment,” the write up mentioned.
The organization nonetheless gave assurance which considering it really is nevertheless committed to providing affordable smartphones, it can be compelled to build an assembling plant inside Ghana inside purchase to guarantee which the costs of the equipment are not affected by the 20 % import taxes.
“This is amidst the potential procedures the organization might take depending found on the impact of the taxes about the sales output,” Huawei mentioned.
Media plus Publicity Manager at Tecno Ghana, Rev. J. K. Asante additionally told ADOMBUSINESS they do not have choice than to strengthen costs for today, adding which currently the organization is channeling a better element of its efforts at establishing its own assembling plant inside Ghana to serve the West African sub-region.
He is confident which the establishment of the assembling plant might aid the business avoid the import taxes and supply jobs for Ghanaians.
Representatives of Nokia plus Apple inside Ghana declined comment whenever approached, however, the Concerned Phone plus Accessories Dealers of Ghana have reported a amount of the telephone producers have hinted of plans to relocate to additional nations to avoid the taxes.
Meanwhile, the taxes moreover threatens to derail the latest move by National Communication Authority (NCA) to motivate Nokia plus Huawei inside specific to bring more of their affordable smartphones into Ghana. It equally threatens to stifle Apple’s upcoming affordability campaign.