The Deputy Minister of Communication, Hon. George Andah has revealed that it is the government’s wish that the Telecommunication Networks in Ghana absorb the recently increased Communication Service Tax (CST).
The Telecommunication Networks effective October 1, begun a full implementation of the CST, popularly known as the Talk Tax, which was increased from six per cent (6%) to nine per cent (9%) by the Government of Ghana stated under the CST Act 2008.
Finance Minister, Ken Ofori-Atta, announced the increment in parliament on Monday, 29 July 2019 as earlier reported by Mypurefmonline.com when he presented the mid-year budget review statement.
This tax has been applied to any recharge purchase by network subscribers as for every GH¢1 of recharge purchased, an upfront deduction of 9% CST fee is charged the subscriber leaving ¢0.93 for the purchase of products and services.
The Sector Minister, Ursula Owusu-Ekuful has since warned the Telecommunication companies to seize the upfront deduction of the tax after several mobile phone users expressed their disquiet about the deductions.
Speaking on the issue to Kwame Andinkra on @pure957fm’s #PureMorningDrive, the Deputy Minister of Communication, George Andah stated that, the tax increment was necessary as part of government’s measures to augment the Ghana Beyond Aid agenda and to protect our cyber space as digitization and revenue mobilization serve as a key measure to realizing this dream.
He indicated further that, although it is an industry decision by the TELCOS to pass on the 9% tax increment to consumers, it is the wish of the government that they continued to absorb the increment just like they previously did for the earlier 6% increase.
The Awutu Senya West legislator further reiterated the position and directive by the Communication ministry and warned that the TELCOS should treat the CST tax just like the NHIL and the VAT as consumers should only pay for it as and when they use the services of the provider.
Listen to excerpt of the interview below.
Source: Mypurefmonline.com/ 957fm/ Evans Osei-Bonsu/ October 16, 2019