The Police in Ashanti Region has arrested three persons for the illegal sale of DSTV decoders from Nigeria decoders in Ghana.
A statement from MultiChoice Ghana said three shops were raided with the support of the Cyber Crime Unit and SWAT team of Ghana CID Police in Kumasi.
This followed repeated reports by MultiChoice Ghana of the activities of such person around the country acting as agents of MultiChoice.
According to Cecil Sunkwa Mills, General Manager, MultiChoice Ghana (MCG), “the activities of such persons on the market contravenes the Electronic Communications Act and some importation and tax laws in Ghana”.
He explained MCG was the only company in Ghana with the exclusive licence to import and distribute DStv decoders across the country, adding that, by law, all monthly DStv subscriptions paid in Ghana should attract the following taxes 15% VAT, 2.5% NHIL and 6% CST.
Value Added Tax (VAT) is a tax applied on the value added to goods and services at each stage in the production and distribution chain. It forms part of the final price the consumer pays for products or services.
The National Health Insurance Levy (NHIL) is a levy on goods and services supplied in or imported into Ghana. All products and services are subject to the tax unless they are exempt.
The Communications Service Tax (CST) is a tax levied on charges for the use of communications services that are provided by communications service operators. CST is imposed under Section 1 of the Communications Service Tax Act 2008, (Act 754).
These DStv decoders from Nigeria are smuggled into the country, denying the state of the essential import duties. They are then are sold to the unsuspecting public by these unscrupulous persons.
The purchase and use of such decoders make one an accessory to tax evasion as your month subscriptions are paid in Nigeria, thus, avoiding the payment of tax in Ghana.
According to Section 86 and 149 of the Ghana Revenue Act, a person who enters into a contract with a non-resident person for the supply or use of goods or property of any kind, or the quantity of any services, which agreement gives rise to income accruing in or derived from Ghana, shall pay taxes on that service or good.
Failure to Pay Tax is liable to summary conviction, of imprisonment for a term of not less than three months and not more than one year, or both.
During the raid ledgers with accounts and personal details of persons they were illegally collecting subscription from, and several boxes of decoders were seized.
MultiChoice Ghana urged anyone who may have acquired such decoders to contact the nearest MultiChoice Ghana Office to have their decoder regularised.