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Communications Ministry to meet Telecos Chamber over talk tax

Source Citinewsroom

The Communications Ministry and the Chamber of Telecommunications will meet on Wednesday for further deliberations on the proposed increment in the Communication Service Tax (CST).

The Chamber of Telecommunications claims that consumers will lose about 22 pesewas of every GHc1 talk time purchased due to the proposed fifty percent increment in the CST.

In presenting the mid-year budget review, Finance Minister, Ken Ofori-Atta proposed the increment of the CST from 6% to 9%.

The Minister explained that it is increasing the communication service tax as a means to create a viable technology ecosystem in the country.

“Government proposes to increase the tax to nine percent 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 and other financial crimes. The increase will not be earmarked, however, the sharing ratio will be adjusted in such a manner that the national youth employment programmes continue to receive the same proportions as they are currently receiving,” the  Finance Minister  said.

The proposal has since been met with mixed reactions from Ghanaians and strong opposition from entities like the Chamber of Telecommunications and the Consumer Protection Agency.

The talk tax which was introduced in 2008 is charged on the use of communication services in the country including voice calls.

Data from the Ministry of Finance showed that in 2018, the government accrued GH¢420 million from the tax.

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