Ghanaians to pay more for talking as government increases Communication Service Tax

Ghanaians to pay more for talking as government increases Communication Service Tax

- Finance Minister Ken Ofori Atta, says Ghana is in a far better shape now than it was 31 months ago

- According to the minister, government has increased the Communication Service Tax from 6% to 9%

- The Communication Service Tax (CST) is levied on charges for the use of communications services that are provided by operators in the country

The government has announced a 3% increase in the Communication Service Tax from to the initial 6% to 9%.

Finance Minister, Ken Ofori-Atta, announced the increment in parliament on Monday, July 29, 2019, when he presented the mid-year budget review statement.

The Communication Service Tax (CST) was introduced in 2008 at an ad valorem rate of six per cent. The tax is levied on charges payable by consumers for the use of communication services.

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Government proposes to increase the tax to nine per cent to develop the foundation for the creation of a viable technology ecosystem in the country," Mr Ofori-Atta told the House.

He also told the lawmakers that government will be putting in systems to identify and combat cybercrime, protect users of information technology and combat money laundering and other financial crimes.

"The increase will not be earmarked, however, the sharing ratio will be adjusted in such a manner that the national youth employment programmes continue to receive the same proportions as they are currently receiving," he added.

Mr Ofori-Atta also announced the scrapping of the Luxury Vehicles Levy introduced in 2018 saying the government has considered agitations by the public and various bodies advocating the cancellation of the levy.

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He told Parliament that “as a listening government, we are proposing to the House, the withdrawal of the levy”.

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