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The four percent reduction in the communications service tax (CST) will take effect on Tuesday, September 15, 2020.
Finance Minister Ken Ofori-Atta, presenting the 2020 mid-year budget review in July, announced the reduction of the tax from nine percent to five percent.
According to a statement from the Ghana Chamber of Telecommunications on Monday, the modifications would represent a 5% CST charge and would be applied through a tariff adjustment on products and services.
It added that mobile network operators would notify customers of the completion of the modification exercise and provide greater transparency on adjusted rates for their products and services, while offering other relevant information after the use of the services.
The CST was introduced in 2008 at an ad valorem rate of 6%. The tax is applied to charges that consumers must pay for the use of communication services.
In 2018, the tax generated a total of GH ¢ 420 million, which represents an increase of 27.7 percent compared to the ¢ 304 million accrued in 2017.
The amount generated by the tax was 4.56 percent more than the ¢ 401.8 million projected in the 2018 mid-year budget.
Telecommunications companies began charging customers the revised CST effective October 1, 2019, after the Minister of Finance, Mr. Ken Ofori-Atta, announced a tax increase from six to nine percent in the Supplementary Budget.
The Finance Minister, justifying the increase, said it aimed to create a viable technology ecosystem to, among other things, identify and combat cybercrime.
Source: graphiconline.com
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