Telcos stop 9% CST upfront deduction

Tue, 26 Nov 2019 Source: Class FM

Telecommunication operators across the country on Tuesday, 26 November 2019 stopped the 9% CST upfront deduction on airtime and data.

It follows a directive by the Ghana Chamber of Telecommunication to all telecom operators to cease their upfront deductions of the 9% Communication Service Tax (CST) effective today.

This followed the Chamber’s agreement with the government to apply the 9% CST as a price increase instead of as an upfront deduction on recharge.

The Chamber said the reconfiguration of its systems to accommodate the commercial and technical requirements was due to be completed by today.

“This will offer customers a smooth transition and better experience,” a statement signed by Mr Kenneth Ashigbey, CEO of the Ghana Chamber of Telecommunication said.

The statement added that telecommunication operators will notify their customers on the completion of the exercise and provide transparency on the adjusted tariffs of their products and services as well as offer information to subscribers, post-usage of these services.

It is recalled that the Communication Ministry, a few months ago, ordered Mobile Network Operators (MNOs) to stop passing on the 9% CST to subscribers.

In a letter addressed to the National Communication Authority (NCA), the Communication Ministry stated that the CST should be treated the same way VAT, NHIL, GETfund levy and all other taxes and levies imposed on entities doing business in Ghana are treated.

Source: Class FM
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