Government reduces 'talk tax' from 9% to 5%

Government has eased the cost of the Communication Service Tax (CST) from nine percent to five percent due to the coronavirus pandemic.

Finance Minister, Ken Ofori-Atta, announced this reduction in parliament on Thursday, July 23, 2020, when he presented the Mid-year budget review statement.

Addressing the august House, he noted, “In the short term, we will reduce the CST from 9% to 5% to reduce the cost of communication services to the consumer as more and more people work remotely and utilize online services.”

He urged telecommunication providers to adhere to the directive and reduce the tariffs for consumers.

“We will count on the Telcos to match this reduction in the CST by reducing their tariffs. This is important for our youth, entrepreneurs and the burgeoning FINTEC industry.”

Background

The government in 2019 increased the Communication Service Tax to nine percent from the initial six percent.

This increment, according government, was to develop the foundation for the creation of a viable technology ecosystem in the country.

However, the government announced a reduction to limit the economic burden due to coronavirus pandemic