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Telcos Begins Charging 9% Communication Service Tax Today

Mobile phone users will from today, October 1, 2019 begin paying more for communication services following the implementation of the 9% Communication Services Tax.

The tax, which was hitherto pegged at 6% was increased to 9% when the Finance Minister, Ken Ofori-Atta, announced the decision in Parliament in July 2019 during the presentation of the 2019 mid-year budget review.

Some mobile users have already received text messages from their service providers about the new development which they say will be “applied to every recharge.”

“Dear customer, with the increase in Communications Service Tax – CST to 9%, effective 1st October 2019, CST of 9% will be applied to every recharge. Thank you,” a text to a Vodafone Ghana user read.

The effect of this development on customers according to Ghana Chamber of Telecommunications is that “for every ¢1 of recharge purchased, a 9% CST fee will be charged leaving ¢0.93 for the purchase of products and services.”

According to Ken Ofori-Atta, the increase in the tax was to help develop the foundation for a viable technology ecosystem in the county.

This will comprise putting in systems to identify and combat cyber crime, protect users of information technology and combat money laundering and other financial crimes.

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