Cable TV services provider, DSTV, has announced that it will from November 1, 2019, adjust upwards the prices of all its subscription packages following the increase in the communication service tax (CST) by the government.
The Communication Service Tax which was introduced in 2008 was pegged at a rate of 6 percent payable by consumers of certain electronic communication services — but the Minister of Finance, Ken Ofori-Atta in his mid-year budget announce a 50 percent increment in the CST rate.
According to the Minister, increasing the rate to 9 percent would allow the government to have access to funds to battle the incidence of cybercrime as well as provide a robust eco-system where users of electronic communications services feel much safe.
While the telcos have had several disagreements over the implementation of the CST, DSTV in a notice to its subscribers said: “Due to the increase in CST, be advised of a subscription price adjustment on your package from November 1, 2019.â€
For instance, a Compact Plus Package which comes at a monthly subscription of GHS205 will see an extra GH5 increase following the coming into effect of the CST.
Report telcos that still deduct CST upfront
The government through the Communications Ministry has also asked the general public to report telcos that still charge them the 9% Communication Service Tax (CST).
A Deputy Minister for Communications, George Andah said all telcos have been directed to immediately stop the upfront deductions made on mobile credit top-ups by service users.
Mr. Andah explained that the CST which was increased from 6% to 9% earlier this year, must be implemented in the same manner as it is with the health insurance levy and the value-added tax.
He warned that service providers who disregard the directive run the risk of facing sanctions including losing their licences.
“As far as the directive signed by the minister is concerned, the telcos are to ensure that immediate effect is given to the directive. Anybody that is still not experiencing the directive has every right to file a complaint with the National Communications Authority (NCA) and I believe the NCA will act. If the telcos are mindful of the fact that the minister has the capacity to issue the policy as far as her sector is concerned, then they have to do the needful,†he said.
“There are a number of consequences for anybody operating in Ghana not following the policy decision of the sector. It could range from fines to the withdrawal of licenses,†George Andah added.