The government as part of the 2019 mid-year budget review amended the Act referenced above increasing CST from six per cent to nine per cent. CST, as specified in Act 998, is a consumer tax and will thus have to be borne by consumers. This will require modifications of what customers pay in total for communication services.
The objective of the increase as detailed in the mid-year budget is to “develop the foundation for the creation of a viable technology ecosystem in the country. This will comprise amongst others putting in systems to identify and combat cybercrime, protect users of information technology and combat money laundering among other financial crimes”.
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 increase the cost of telecommunication services.
Here is a brief explanation of the implications for 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 GH¢0.93 for the purchase of products and services.
Below is an illustration of how the calculation of the applicable effective CST charge is achieved.
Customers of telecommunication services would be notified by their service providers of the changes when they purchase recharge and / or products and services. The implementation of this new format of applying the CST will start on the 1st of October 2019
The telecommunications industry remains committed to full transparency and accountability to both the Government of Ghana and its customers, and it seeks the support and understanding of its customers through the implementation of the increased CST and its implications to telecommunications services and charges.
Signed
Ing. Kenneth Ashigbey
Chief Executive Officer
Ghana Chamber of Telecommunications
Editors Note
About the Telecoms Chamber
The Ghana Chamber of Telecommunication is an industry association and a private initiative by the mobile network operators in Ghana. We are an advocacy institution established to help direct telecommunications policy, legislation and regulation, and pursue research towards the development of telecommunications.
As the voice of the mobile operators and tower companies in Ghana, we work through direct engagements with the government (institutions), civil society, key stakeholders and consumers to shape the mobile ecosystem and maximize the socio-economic benefits of mobile in Ghana. The Chamber was registered in 2010 and inaugurated in 2011.
