Many unaware of Communication Service Tax

The Communication Service Tax (CST) has taken effect but many in the public remain unaware of its implementation.

The CST was hiked from six per cent to nine per cent in the mid-year review and supplementary budget presented to Parliament by Mr Ken Ofori-Atta, the Minister of Finance.

This, would affect the cost of telecommunication services rendered to customers by the companies including Vodafone Ghana, AirtelTigo, and MTN Ghana. A statement issued by the Chamber of Telecommunications, said the CST, has been increased from six per cent to nine per cent and would be applied to any recharge purchased by customers.

It said with every GHC 1.00 worth of recharge or airtime purchased, a nine per cent CST fee would be charged leaving GHC 0.93 per cent for purchase of products and services.

While some members of the public, who spoke to the GNA said they were unaware of the new tax, others said although they had heard of it, they were not aware that it was going to take effect from October 1.

Madam Loyce Eyram Sekpla, a 40-year old Pharmacist, said: “As for my house, we do listen to news every time so we have heard of it. Just that we didn’t know it was going to take effect soon.”

On the other hand, Nii Laryea Taigoe, a mobile money and recharge card merchant told the GNA, that he had not heard of the new development at all and was hoping that it didn’t affect their business.

“Me, I do mobile money, but I haven’t heard of this. I’m only hoping that it doesn’t affect the movement of my work and sale of recharge cards because I know customers will complain by all means,” he said.

The revised tax according to the Finance Minister would promote development of a viable technology ecosystem in the country.

Among the benefits the state would enjoy in the implementation of the revised CTS is the protection of users of information technology, combat money laundering and identification and combating of crime.