Telcos to stop upfront deduction of CST on Nov 26


Telecommunication companies in Ghana have resolved to stop the upfront deduction of the Communications Service Tax (CST) by November 26, 2019.

This new development was announced in a statement issued by the Ghana Chamber of Telecommunications.

This comes on the back of Minister of Communications, Ursula Owusu-Ekuful’s warning to the Telcos to stop the upfront deduction of CST as it was painting government black.

Communications Minister, Ursula Owusu-Ekuful said at a press conference that the Telcos were being disingenuous in their handling of the CST increment which they hitherto did not deduct upfront from recharges made by consumers.

Mrs Owusu-Ekuful later demanded a halt to the 9% CST which is being charged upfront on recharges.

After back and forth on the issue, the CEO of the Ghana Chamber of Telecommunication told Angel FM’s Nana Gyenin that the Telcos have finally decided to halt the upfront deduction of the CST.

According to Ken Ashigbe, it was agreed that the Telcos will rather apply the tax through a tariff adjustment programme which will take effect on November 26, 2019.

He explained that despite the arrangement to stop upfront deductions, the GRA will still calculate and account for the CST as an upfront charge.

He added that, the Chamber has also decided to give extra value to reward customers for their loyalty.

Source: Ghana |


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