Ghana Revenue Authority directs telecommunication networks to start charging customers the new communication tax

The Ghana Revenue Authority (GRA) has asked telecommunication operators in the country to begin charging customers the revised Communication Service Tax (CST).

Commissioner General of the Ghana Revenue Authority, Emmanuel Kofi Nti

This comes after the President of the country signed the Supplementary Budget from the Finance Ministry for the remaining of the year.

The directive, according to Accra based JoyBusiness, was contained in a letter to the telcos on September 4, 2019.

In the meantime, the implementation would not affect Radio and TV as well as other stakeholders in the broadcasting industry.

Background

The Minister of Finance, Ken Ofori-Atta, on Monday, July 29, 2019, announced an increment in the CST from six percent to nine percent in Parliament.

Presenting the Mid-Year Fiscal Policy Review of the 2019 Budget Statement and Economic Policy and Supplementary Estimates of the Government of Ghana for the 2019 Financial Year, Mr Ofori-Atta explained that the increment was aimed at creating a viable technology ecosystem to, among other things, identify and combat cybercrime.

“Government proposes to increase the tax to nine percent to develop the foundation for the creation of a viable technology ecosystem to identify and combat cybercrime, protect users of information technology and combat money laundering and other financial crimes.

The increase will not be earmarked; however, the sharing ratio will be adjusted in such a manner that the national youth employment programmes continue to receive the same proportions as they are currently receiving,” he said.

How the increment will affect customers

The Chamber of Telecommunications says consumers of telecommunications services will lose about 22 pesewas out of every GH¢1 talk time they buy.

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