9% service tax: Mobile users to pay more on communication services

9% service tax: Mobile users to pay more on communication services

- Mobile phone users will from today, October 1, 2019, begin paying more for communication services

- The tax, which was earlier 6% was increased to 9% when the Finance Minister announced the decision during the presentation of the 2019 mid-year budget review

- According to Ghana Chamber of Telecommunications, 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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Mobile phone users will from today, October 1, 2019 pay more for communication services following the implementation of a 9% Communication Services Tax.

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

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

Telcos begin charging 9% Communication Service Tax today

Communication Service Tax today Source: UGC
Source: UGC

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According to the Ghana Chamber of Telecommunications, 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 is to help develop the foundation for a viable technology ecosystem in the county.

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

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In a related development, Ghanaians will from Tuesday, October 1, 2019, pay more for electricity and water following the upward review of tariffs by the Public Utilities Regulatory Commission (PURC).

The PURC in a statement signed by the executive secretary, Mrs. Mami Dufie Ofori noted that electricity will go up by 5.94% and water by 2.22%.

The statement further explained that the upward adjustment became necessary due to factors such as Ghana cedi-US dollar exchange rate, inflation, demand forecast and electricity cost.

READ ALSO: Ghanaians to pay more for electricity and water effective October l

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