NOTICE OF TELECOMMUNICATIONS TARIFF MODIFICATIONS FOLLOWING THE INCREMENT OF THE COMMUNICATIONS SERVICE TAX (CST), ACT 754
NOTICE OF TELECOMMUNICATIONS TARIFF MODIFICATIONS FOLLOWING THE INCREMENT OF THE COMMUNICATIONS SERVICE TAX (CST), ACT 754
Accra, September 6, 2019 – 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 which is a consumer tax and will thus require modifications of what customers pay in total for communication services..
The government as part of the 2019 mid-year budget review amended the Act referenced above increasing CST from six per cent to nine per cent. The objective was to “develop the foundation for the creation of a viable technology ecosystem in the country. This will comprise amongst others putting in systems to identify and combat cybercrime, protect users of information technology and combat money laundering among other financial crimes”.
Our members, responsible corporate entities, would comply fully with Ghana’s laws. As intended, the incidence of the modification will thus be on consumers and will result in the increase of cost of telecommunication services. An illustration of the effect of the increase in the CST is show below:
| CST Increase to 9% | Tax Rate | GH¢ |
| Customer Purchase – Scratch Card Face Value
|
1.00 | |
| VAT | 12.50% | 0.11 |
| NHIL | 2.50% | 0.02 |
| GETFL | 2.50% | 0.02 |
| CST | 9.00% | 0.07 |
| Total Amount left for Customer to get Telecom Services | 77.97% | 0.78 |
Customers of telecommunication services would be notified by their service providers of the changes when they purchase any services.
The telecommunications industry remains committed to full transparency and accountability to both the Government of Ghana and their customers.
Signed
Kenneth Ashigbey
Chief Executive Officer
Ghana Chamber of Telecommunications
Editors Note
About the Telecoms Chamber
The Ghana Chamber of Telecommunication is an industry association and a private initiative by the mobile network operators in Ghana. We are an advocacy institution established to help direct telecommunications policy, legislation and regulation, and pursue research towards the development of telecommunications.
As the voice of the mobile operators and tower companies in Ghana, we work through direct engagements with government (institutions), civil society, key stakeholders and consumers to shape the mobile ecosystem and maximize the socio-economic benefits of mobile in Ghana. The Chamber was registered in 2010 and inaugurated in 2011.
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