5% Communications Service Tax reduction takes effect today

he reduction of the Communications Services Tax (CST) to four per cent takes effect today Tuesday, September 15, 2020.

Government in 2018 increased the CST charge from 6% to 9% after the finance minister announced it in the Supplementary Budget.

However, almost a year after taking the decision, government under Akufo-Addo has backtracked on it. The Minister of Finance, Mr Ken Ofori-Atta at the presentation of the 2020 mid-year budget review announced the reduction of the tax to parliament.

The Ghana Chamber of Telecommunications on Monday issued a statement that the adjustments in the 5% CST charge will apply through a tariff regulation on products and services.

Mobile Network Operators are also expected to inform their customers on the final changes made to ensure transparency on the new reduced tariffs for products and services as well as other important information.

The CST was passed into law in 2008 at a cost of 6% charge.

The government earned a total of GH¢420 million from the previous 6% charge rate in 2018 which was a 27.7% improvement from the previous ¢304 million accrued in 2017.

Source: www.ghanaweb.com