The government abandoned its $773 million tax charges against the mobile network provider, MTN, according to recent press sources, and the company now expects to invest $1 billion in Ghana. Future investments by MTN in the nation are anticipated to be made easier by the government’s decision to dismiss the claims.
The largest mobile network provider in the Middle East and Africa is MTN. The company’s operations are scattered over 21 countries in Africa, the Middle East and Asia. MTN’s investments will be directed at enhancing the nation’s infrastructure, including the quick installation of fiber and 5G.
MTN and the Ghanaian government had been engaged in a tax battle for a number of years. MTN was required to pay $773 million in taxes, fines, and interest to the Ghana Revenue Authority (GRA) in 2019 for the years 2014 to 2018. MTN was charged with 30% revenue underreporting. MTN contested the allegations and filed a lawsuit.
However, the GRA declared in February 2023 that it had chosen to completely abandon the tax charges against MTN. The decision was made after negotiations between the two sides and was aimed at encouraging MTN to continue investing in the country.
One of Ghana’s biggest telecommunications firms, MTN has been doing business there since 2006. The $1 billion investment is anticipated to be made over the next three years and will be used to upgrade MTN’s services and extend its network infrastructure.
In general, it is thought that the Ghanaian government’s decision to withdraw its tax claims against MTN is a good thing for both the firm and the nation. It is anticipated that this could persuade further foreign investors to think about making investments in Ghana, which might support employment development and economic expansion.
