African Development Bank (AfDB) is to undertake a study on taxation of telecommunications services and related products in the ECOWAS region and has selected Ghana and the Republic of Guinea to enhance the study.
“The study will define the modalities for abolishing tax on international incoming calls to ECOWAS region and also conduct an analysis on how sectoral taxes will impact such a move in all member states in the ECOWAS/UEMOA region, and taking case studies from Ghana and the Republic of Guinea Conakry, who are already implementing taxes on international incoming calls,” the AfDB said in a notice on May 28, calling for consultants to help conduct the study.
According to the Bank, the taxes to be investigated will include an “analysis of how the taxes and import duties on equipment, taxes on the retail supply of handsets, taxes on services and (more difficult) taxes on profits will have an impact on ECOWAS member States economic and GDP if taxes on international incoming calls are removed”.
The study will be completed within a period of four months and it will cover countries in the ECOWAS region.
The AfDB said it expects the region to have a sound Telecommunication Sector Taxation Policy based on empirical data after the study.