Prime News Ghana

Telcos to increase mobile tariffs in November 

By Justice Kofi Bimpeh
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Mobile Network Operators in the country have announced an impending increase in tariffs from November 2019.

 The tariff increase according to the Chamber of Telecommunications is the outcome of discussions with the government over their implementation of the CST which was increased from 6% to 9%.

Chamber of Telecommunications made this known in a statement released on Wednesday.

Speaking to Joy FM, Chief Executive of the Telecom Chamber Ken Ashigbey said customers should expect a 7% mobile tariff increase in November.

"The effective rate is actually 7% because there is an interesting thing, there is VAT being calculated on the CST.."

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

Telcos agree to stop upfront deduction of 9% CST

The telecommunication companies in Ghana have agreed to stop the 9% upfront deduction of the Communication Service Tax (CST).

This was after the Ministry of Communications, as well as the NCA, held a meeting with the telcos today October 30, 2019.

Even though they have agreed, the implementation of the new format which will not see an upfront deduction will begin on November 26, 2019.

What it means is from November 26, subscribers will only be charged the 9% CST when they make calls and it will no longer be upfront.

Portions of a statement from the Ghana Chamber of Telecommunications read: The Ghana Chamber of Telecommunications wishes to inform mobile subscribers and the general public that following the fruitful discussions between government and industries, an agreement to stop upfront deductions of CST but rather apply the tax through a tariff adjustment has been reached.

The telcos also say the deductions were legal and were not a ploy to make the government unpopular as claimed by Minister for Communication Ursula Owusu.

"Considering our intentions to engage all relevant agencies following the passage of the CST, the mobile industry considers the upfront deduction legal"

Read the full statement here