"Talk Tax" begins on Sunday

Accra, May 30, GNA - The VAT Service on Friday reminded the general public that the Communication Service Tax (CST), popularly known as the Talk Tax, would begin on Sunday.

It also asked the public to note that the tax would not only be charged on phone calls but on all other communication services stated under the CST Act 2008.


Nii Ayi Aryeetey, Assistant Commissioner for Research, Monitoring and Planning, said this at a seminar organized by the Service to educate Internet Service Providers (ISPs) on their roles in implementing the Tax.


He explained that the Tax which would be paid by consumers to communication service providers would attract charges on internet, broadcasting, cable, maritime and satellite services as well as other services provided through transmissions or signals to produce sounds or visual images.


He stated that all communication service providers who had obtained a Class 1 Licence from the National Communications Authority would be notified in writing by the VAT Commissioner before they could charge the Tax.


Nii Aryeetey said other free zone enterprises in addition to non-resident service providers also issued with the Class 1 licence would also charge the Tax.


On submission of returns, Nii Aryeetey said all returns must be submitted to the Service each month and failure to do so would attract a penalty of GH2,000 cedis and a further penalty of GH¢ 500 for each day that the returns were not submitted.

"Failure to pay CST by due date attracts interest at the rate of 150 per cent of the average of prevailing commercial banks lending rates as published by the Bank of Ghana," he added.


Nii Aryeetey therefore asked ISPs to renew all earlier contracts since they would be required to pay the tax on all services provided henceforth, adding that the tax exemption on the importation of cellular and satellite phones were still in force.


He said exemption on phone accessories was not inclusive yet, but the Customs, Excise and Preventive Service (CEPS) was having talks to find out what could be done.


Mr Anthony Ewereko Minlah, Commissioner of VAT, called for collaboration between the Service and the ISPs to generate the needed revenue to finance the National Youth Employment Programme and other development projects.


He said the Service was ready to provide any other information or support to its collectors to create the needed platform in making the CTS effective. The ISPs however, expressed concern about the short notice given for the commencement of the Tax. 30 May 08