Prime News Ghana

Report telcos that still deduct CST upfront – Gov’t to Ghanaians

By Justice Kofi Bimpeh
George Andah
George Andah
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The government through the Communications Ministry has 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 in an interview with Citi FM 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.

READ ALSO: Stop the upfront deduction of CST - Gov't to Telcos

“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.

READ ALSO: GRA directs telcos to start charging revised CST

The announcement of the increment in CST, also known as Talk Tax saw telcos announcing subsequently that “for every ¢1 of recharge purchased, a 9% CST fee will be charged leaving ¢0.93 for the purchase of products and services.”

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