NEWS

Failure To Extend SIM Card Registration Will Hurt Gov’t

An activist of the governing New Patriotic Party (NPP) has joined growing calls for the Ministry of Communication and Digitalization, to extend the deadline for the ongoing SIM card re-registration exercise, expected to come to an end on July 31.

According Razak Kojo Opoku, failure by the Ministry headed by Mrs Ursula Owusu-Ekuful, to heed to the many calls will not only inconvenience mobile subscribers, but will largely hurt government revenue collection drive, and also the telecommunication network operators.

In his latest piece titled “Government should extend SIM card registration exercise”, Razak outlined the negative effects the directive will have on some departments of government and Ghanaians, as a whole, if allowed to hold.

At a time, government is in dire need of internal revenue to execute many of its projects, Razak said important revenue collection areas, such as, Communication Service Tax, Electronic levy as well as Value Added Tax, will fail to rake in the projected funds if the Ministry goes ahead with the directive.

“I honestly think that, the Minister and her Ministry should review this entrenched decision since such a decision would definitely undermines the revenue mobilization efforts of the government through the Ghana Revenue Authority (GRA)”, Razak.

He cautioned Mrs. Ekuful saying “This is not the convenient time for the show of political administrative power. The Government needs support of the Citizens to succeed under the prevailing global economic crisis”.

Below Is Published, His Full Text:

Government Should Extend the SIM Card Registration Exercise: Razak Kojo Opoku Writes

According to the Minister of Communication and Digitalization, the Ministry would not extend the 31st July 2022 deadline for the nationwide SIM Card Registration Exercise and all unregistered SIM Cards would be deactivated by 31st July 2022.

It’s imperative for the Ministry to take into consideration that about 800,000 subscribers to the Ghana Card, which is basic requirement for the registration, have not received their cards. And more mobile phone users in the country have not been able to acquire their Ghana Card.

Even more, some Ghanaians have errors on their Ghana Cards or have misplaced the Ghana Cards waiting for replacement.

I honestly think that, the Minister and her Ministry should review this entrenched decision since such a decision would definitely undermines the revenue mobilization efforts of the government through the Ghana Revenue Authority (GRA)

Four (4) key government revenue policies would be badly affected if SIM Cards Registration Exercise is not extended namely the:

  1. E-Levy
  2. Communications Service Tax (CST)
  3. GETFUND/NHIL
  4. VAT

If by 31st July 2022, majority of mobile phone users have not been able to register their SIM Cards and the Ministry of Communication and Digitalization go head with the deactivation of all the unregistered SIM cards, the bodies that would be negatively affected most are the :

  1. Government of Ghana
  2. Telecommunications companies

The GRA on behalf of Government  would struggle to generate revenue from the E-levy, CST, VAT and GETFUND/NHIL.

The revenue expectations of the Telecos too would significantly reduce thereby reducing their corporate taxes to the State.

We are not in normal times and this is a time the Government of Ghana needs a lot of domestic revenue generation to augment the IMF support. This is not the convenient time for the show of political administrative power. The Government need support of the Citizens to succeed under the prevailing global economic crisis.

Certainly, not extending the SIM Cards Registration Exercise would:

  1. create widespread apathy for the Government because majority of Ghanaians will not be able to meet the 31st July 2022 deadline.

This will further create room for the NDC and some CSOs to make noise and incite the Citizens against the Government.

  1. also affect the revenue policies of Government especially E-levy and CST.

The Youth Employment Agency (YEA) and National Youth Authority (NYA) largely depends on the Communication Service Tax for survival.

Moving forward, the Ministry of Communication and Digitalization in collaboration with the Telecommunications Companies should intensify the campaign for the SIM Cards Registration and educate Ghanaians, especially the illiterates on the importance of SIM Cards Registration Exercise which is aimed at eradicating fraudsters, scammers and criminals from the Ghanaian society.

Measures should be put in place by Government to ensure that all new SIM Cards are registered before use and all old existing SIM Cards get registered at least even 90-95%.

The 31st July 2022 deadline is absolutely needless and counterproductive.

Source: Anchorghana

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