Three persons dealing in illegal DStv decoders have been arrested in Ashanti Region for importing, storing, distributing and selling of MC Nigeria decoders in Ghana.
The three shops were raided with the support of the Cyber Crime Unit and SWAT team of Ghana CID Police in Kumasi.
According to Cecil Sunkwa Mills, General Manager, MultiChoice Ghana, “the activities of such persons on the market contravenes the Electronic Communications Act and a number of importation and tax laws in Ghana”.
He explains MCG is the only company in Ghana with the special 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 goods or services.
The National Health Insurance Levy (NHIL) is a levy on goods and services supplied in or imported into Ghana. All goods and services are subject to the levy 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 country of requisite import duties, then are sold to the unsuspecting public by these unscrupulous persons. The purchase and use of such decoders makes 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 supply of any services, which contract gives rise to income accruing in or derived from Ghana, shall pay taxes on that service or good.
Failure to Pay Tax is liable onto 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 urges anyone who may have acquired such decoders to contact the nearest MultiChoice Ghana Office to have their decoder regularized.