Here’s how telecommunication networks in Ghana intend to deduct the 9% Communication Service Tax instead of the upfront

According to the Chamber, telcos are recalibrating their systems to effect the change by Tuesday, November 26.

“All the telcos are working towards adjusting their tariffs. Going forward, the upfront deduction will stop also. When you load your airtime, you’ll get the same amount. The taxes will be deducted as and when you use the airtime.”

The Chief Executive Officer (CEO) of the Chamber, Kenneth Ashigbey, said this while he spoke to Accra based Starr FM.

A statement by the chamber, earlier, stated that the telcos will rather apply the tax through a tariff adjustment programme which takes effect November 26, 2019.

The statement added that mobile industry considers the upfront deduction legal and implemented the current CST based on alignment with how the Ghana Revenue Authority (GRA) calculates and charges the CST but has decided to stop upfront deduction out of good faith.

“The members of the Ghana Chamber of Telecommunications will like to reassure its customers that we have acted in good faith considering our intentions to engage all relevant agencies following the passage of the CST Amendment Law."

Background

The Minister of Communications, Ursula Owusu-Ekuful, at a press conference months ago directed the telcos to stop charging the CST upfront saying they were being disingenuous in their handling of the CST increment.