MTN challenging R904-million back-tax bill

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MTN challenging R904-million back-tax bill
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African phone companies have been pushing back on sporadic tax demands from countries and regulators on the continent.

Last week, six telecommunications chief executives — including MTN’s Ralph Mupita and Vodacom Group Ltd.’s Shameel Joosub — urged African leaders and policymakers to “rationalise” taxation on the mobile industry through the development of targeted fiscal policy reforms, according to an agreement signed in Rwanda.

MTN has a history of impasses with Nigerian authorities and was victorious in a dispute in the West African nation in 2020, when the government dropped a $2 billion claim for back taxes. More recently, Ghana had to abandon a $773 million back-tax bill against MTN that the company disputed. MTN shares fell as much as 5.6%, the most since Aug. 2, and were 5.1% lower by 4:13 p.m. in Johannesburg.which aims to encourage constructive discussions. To get your comments published, make sure it is civil and adds value to the discussion.

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