Telcos in Ghana are still charging 9% CST upfront on recharge despite Minister’s directive

Minister for Communications, Ursula Owusu-Ekuful
  • The Communication Service Tax has been increased to 9%.
  • The telcos are charging the 9% upfront on recharges but the government has ordered them to stop.
  • However, the telcos are still charging the CST upfront.

Consumers of Ghana’s mobile telecommunication services are still paying the 9% Communication Service Tax (CST) upfront on recharges over a week after the Minister of Communication ordered that the practice is stopped.

The Minister of Communications Ursula Owusu-Ekuful said the telcos operating in the country are being disingenuous in their deduction of the CST. She argued that hitherto they did not deduct upfront from recharges made by consumers.

“The Ministry met mobile network operators and the regulator on 7th and 8th October 2019 on this unusual practice which flew in the face of industry experience and we were informed by MNOs that they took advantage of the 3% increase to pass on the entire tax to subscribers.”

“CST should be treated the same way VAT, GETFUND, NHI levy and all other taxes imposed on entities doing business in Ghana are treated. The extraordinary upfront deduction of CST and notification of the same to subscribers must stop with immediate effect,” the Minister added.

While the Minister demanded an immediate stop to the practice, the directive was not received well by the telcos. Meanwhile, the telcos are still holding discussions with the government to conclude issues surrounding the implementation of the CST.

Aside from the challenge with the upfront deduction of the CST, the start date of the tax has also been a matter of disagreement between the two parties. 

The telcos started implementing the CST since October 1, 2019. But the government said the actual implementation date should be backdated to September 4, 2019.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Africa’s richest man Aliko Dangote seeks to raise an additional $1.1 billion to complete his refinery project by 2023

Africa’s richest man Aliko Dangote seeks to raise an additional $1.1 billion to complete his refinery project by 2023

8 African countries where Rihanna plans to launch her luxury Fenty Beauty products

8 African countries where Rihanna plans to launch her luxury Fenty Beauty products

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

5 African countries with the cheapest gas prices in 2022

5 African countries with the cheapest gas prices in 2022

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Haiwezi, my wife is prettier - Omanyala turns down Huddah’s advances

Haiwezi, my wife is prettier - Omanyala turns down Huddah’s advances