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Gov’t orders Telco’s to scrap 9% communication service tax

The Communications Ministry has ordered Mobile Network Operators (MNOs) to stop passing on the 9% Communication Service Tax (CST) to subscribers.

In a letter addressed to the National Communications Authority (NCA), and published in full below, the Communications 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.

“At a series of meetings held between the Ministry of Communications, Mobile Network Organisations (MNOs) and the NCA on 7th and 8th October, 2019, we were informed that prior to 4th September 2019, MNOs had not been passing on CST to subscribers but had decided to take advantage of the 3% increase to pass on the entire tax to subscribers. This has effectively increased their profit margin at the expense of subscribers,” the letter explained.

MTN, AirtelTigo, Vodafone and Glo have been charging their customers the full amount of the revised Communication Service Tax (CST) since October 1, 2019.

Below is a copy of the statement.

by: Naa Anyema

About Naa Anyema Collison

A broadcast journalist who has an interest in financial happenings in the world of business. Currently the face of AM News Host of Kids House Business Desk @Adoa Television

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