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Telcos to charge increased 9 percent Communication Service Tax from Oct. 1

Mobile telecoms companies will from October 1, 2019, begin to charge customers the newly adjusted Communication Service Tax (CST).

A statement by the Ghana Chamber of Telecoms stated that the 9 percent tax will be borne fully by consumers.

The increase in the CST was announced by the Finance Minister Ken Ofori-Atta in his 2019 mid-year budget.

The government as part of the 2019 mid-year budget review amended the CST Act increasing from six percent to nine percent.

“CST, as specified in Act 998, is a consumer tax and will thus have to be borne by consumers. This will require modifications of what customers pay in total for communication services,” the statement said.

CEO of the Ghana Telecommunications Chamber, Kenneth Ashigbey

According to the Finance Minister, the objective of the increase as detailed in the mid-year budget is to “develop the foundation for the creation of a viable technology ecosystem in the country. This will comprise amongst others putting in systems to identify and combat cybercrime, protect users of information technology and combat money laundering among other financial crimes”.

But in a statement issued on behalf of MT, Vodafone and AirtelTigo, the Chamber said its members, as responsible corporate entities, would comply fully with Ghana’s laws.

“As intended, the incidence of the modification will thus be on consumers. It will impact the cost of telecommunication services.

Here is a brief explanation of the implications for consumers. CST, which is now at 9%, will be applied to any recharge purchase. For every GH¢1 of recharge purchased, a 9% CST fee will be charged leaving GhS0.91 for purchase of products and services,” the statement read.

The implementation of this new format of applying the CST will start on the 1st of October 2019.

Source: citibusinessnews.com

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