The 5% reduction in Communications Service Tax (CST) will take effect Tuesday, September 15, 2020.
This follows a reduction in the Communication Service Tax (CST) by 5% announced by government in the budget.
The Minister of Finance, Mr Ken Ofori-Atta at the presentation of the 2020 mid-year budget review in July announced the reduction of the tax from 9% to 5%.
A statement from the Ghana Chamber of Telecommunications on Monday the modifications would represent 5% CST charge and would be applied through a tariff adjustment on products and services.
It added that the Mobile Network Operators would notify customers on the completion of the modification exercise and provide further transparency on the adjusted tariffs of their products and services while offering other relevant information post usage of the services.
The CST was introduced in 2008 at an ad valorem rate of 6%. The tax is levied on charges payable by consumers for the use of communication services.
In 2018 the tax brought in a total of GH¢420 million, representing a 27.7% increase from the estimated ¢304 million accrued in 2017.
The amount generated from the levy was 4.56% more than the projected ¢401.8 million in the 2018 mid-year budget.
The telcos started charging customers the revised CST from October 1, 2019, after the Minister of Finance, Mr Ken Ofori-Atta, announced an increment in the tax from 6 to 9% in the Supplementary Budget.
The Finance Minister in justifying the increment had said it was aimed at creating a viable technology ecosystem to among other things identify and combat cybercrime.
Already, the telcos have communicated to their customers the reduction in tariffs will begin tomorrow.
A message sent to several mobile phone users read:
Dear Valued Customer,
In line with Government’s reduction of Communication Service Tax (CST) from 9% to 5%, you will now enjoy reduced tariffs, improved bundle allocations and great value on services to reflect the reduced tax, effective 15th September 2020. Stay connected
