Ghanaian News

Upfront deduction of 9% CST stops November 26 – Ken Ashigbey

The Ghana Chamber of Telecommunications has announced that effective Tuesday, November 26, 2019, Telecommunications Operators will cease upfront deductions of the 9% Communication Service Tax (CST) charge and apply the tax through a tariff adjustment on their products and services.

This follows the Chamber’s agreement with the government to apply the 9% CST as a price increase instead of as an upfront deduction on recharge.

The Chamber say the reconfiguration of their systems to accommodate the commercial and technical requirements is due to be completed by the 26 November 2019.

“This will offer customers a smooth transition and better experience,” a statement signed by Mr Kenneth Ashigbey, CEO of the Ghana Chamber of Telecommunications said.

The statement added that telecommunication operators will notify their customers on the completion of the exercise and provide transparency on the adjusted tariffs of their products and services as well as offer information to subscribers post usage of these services.

It is recalled that the Communications Ministry ordered Mobile Network Operators (MNOs) to stop passing on the 9% CST to subscribers.

In a letter addressed to the National Communications Authority (NCA), the Communications Ministry stated that the CST should be treated the same way VAT, NHIL, GETFUND levy and all other taxes and levies imposed on entities doing business in Ghana are treated.

The CST, which has been increased from 6% to 9%, has been applied to any recharge purchase by subscribers.

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