The sports category has moved to a new website.

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

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.

Telcos in Ghana

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.”

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

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.”

The Finance Minister, Ken Ofori-Atta in the Supplementary Budget announced an increase in the Communication Service Tax from 6% to 9%.

ADVERTISEMENT

Mr Ofori-Atta explained that the increase was to help develop the foundation for a viable technology ecosystem in the county. 

This will comprise putting in systems to identify and combat cybercrime, protect users of information technology and combat money laundering and other financial crimes.

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%. 

The tax is levied on charges payable by consumers for the use of communication services. 

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. 

ADVERTISEMENT

The amount generated from the levy was 4.56% more than the projected GH¢401.8 million in the 2018 mid-year budget.

ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

10 African cities with the highest crime index at the start of 2024

10 African cities with the highest crime index at the start of 2024

Machoka at 70: Emotions run high during Citizen TV presenter's birthday [Video]

Machoka at 70: Emotions run high during Citizen TV presenter's birthday [Video]

Diwali 2022: Is Monday a public holiday in Kenya?

Diwali 2022: Is Monday a public holiday in Kenya?

Akothee finally reveals reasons for separating from Omosh 1 month after wedding

Akothee finally reveals reasons for separating from Omosh 1 month after wedding

Man, once a ‘billionaire’, recounts how he lost wealth, now sells his book on streets [Video]

Man, once a ‘billionaire’, recounts how he lost wealth, now sells his book on streets [Video]

Details of Ngina Kenyatta's luxurious restaurant

Details of Ngina Kenyatta's luxurious restaurant

Zero Chills! Jackie Matubia's advice for Milly Chebby amid the unfollow drama

Zero Chills! Jackie Matubia's advice for Milly Chebby amid the unfollow drama

Nigerian royal dignitaries, including four kings and a queen, expected to attend Museveni’s 50th wedding anniversary celebrations

Nigerian royal dignitaries, including four kings and a queen, expected to attend Museveni’s 50th wedding anniversary celebrations

10 African countries with the strongest military power in 2024

10 African countries with the strongest military power in 2024

ADVERTISEMENT