Communications Service Tax to start from October 1st 2019

The Ghana Chamber of Telecommunications on behalf of its members – AirtelTigo, MTN and Vodafone has provided an explanation of the implications of new Communication Service Tax (CST) on customers.

The Chamber in a statement copied to Graphic Online said, the CST which is now at 9%, will be applied to any recharge purchase.

This means that for every GH¢1 of recharge purchased, a 9% CST fee will be charged leaving GhS0.91 for purchase of products and services. The implementation of the new CST will start on October 1, 2019.

It will be recalled that the government as part of the 2019 mid-year budget review amended Act 754, increasing CST from six per cent to nine per cent.

“Our members, as responsible corporate entities, would comply fully with Ghana’s laws. As intended, the incidence of the modification will thus be on consumers. It will impact the cost of telecommunication services,” the statement said.

“Here is a brief explanation of the implications on consumers. 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”.

Source: Graphic