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9% upfront CST deduction stops Nov 26 – Telcos Chamber

The Ghana Chamber of Telecommunication has announced that effective Tuesday, 26 November 2019, telecommunication operators will cease their upfront deductions of the 9% Communication Service Tax (CST).

This follows 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 says the reconfiguration of its systems to accommodate the commercial and technical requirements is due to be completed by 26 November 2019.

“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 Communications 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.

The CST, which has been increased from 6% to 9%, has been applied to any recharge purchase by subscribers.

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