Telcos in Ghana to start charging 9% Communication Service Tax Oct. 1

Telcos in Ghana to start charging 9% Communication Service Tax Oct. 1

<p class="">The Ghana Chamber of Telecommunications has said that the telecom firms in Ghana will begin charging customers the revised Communication Service Tax (CST) from October 1, 2019.</p>

<p class="">In a statement issued by the Chamber on Friday, it said: “The Ghana Chamber of Telecommunications on behalf of its members – AirtelTigo, MTN, and Vodafone – wishes to notify its esteemed customers and the general public of the increase in Communication Service Tax.”</p>

<p class="">“As intended, the incidence of the modification will thus be on consumers. It will impact the cost of telecommunication services.”</p>

<p class="">The statement also indicated that “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.”</p>

<p class="">The Finance Minister, Ken Ofori-Atta in the Supplementary Budget announced an increase in the Communication Service Tax from 6% to 9%.</p>

<p class="">Mr Ofori-Atta explained that the increase was to help develop the foundation for a viable technology ecosystem in the county. </p>

<p class="">This will comprise putting in systems to identify and combat cybercrime, protect users of information technology and combat money laundering and other financial crimes.</p>

<p class="">The minister added that the sharing ratio would be done in a way that the National Youth Employment programs would still receive the same portions as the current cycle. In 2018 the tax was first introduced at an Ad Valorem Rate of 6%. </p>

<p class="">The tax is levied on charges payable by consumers for the use of communication services. </p>

<p class="">In 2018 the tax brought in a total of GH¢420 million, representing a 27.7% increase from the estimated GH¢304 million accrued in 2017. </p>

<p class="">The amount generated from the levy was 4.56% more than the projected GH¢401.8 million in the 2018 mid-year budget.</p>

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