- Government has reduced the CST by 4 percentage points from 9% to 5%
- This was disclosed by Minister for Finance, Ken Ofori-Atta, during the mid-year budget review and supplementary presentation
- The tax is levied on charges payable by consumers for the use of communication services
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Government has reduced the Communication Service Tax (CST) from nine percent to five percent, Finance Minister, Ken Ofori-Atta, announced on Thursday, July 23, 2020.
“In the short term, we will reduce the CST from 9% to 5% to reduce the cost of communication services to the consumer as more and more people work remotely and utilize online services,” Ken Ofori-Atta said.
The Minister further called on the Telcos to ensure they match the reduction in the CST by reducing their tariffs.
He noted that the move is to help reduce the hardship and stress caused by the COVID-19 pandemic.
The service tax was introduced in 2008 at an ad valorem rate of six percent. The tax is levied on charges payable by consumers for the use of communication services.
In 2018 the tax brought in a total of GHc420 million, representing a 27.7 percent increase from the estimated GHc304 million accrued in 2017.
The amount generated from the levy was 4.56 percent more than the projected GHc401.8 million in the 2018 mid-year budget.
Telcos started charging customers the revised service tax from October 1, 2019 after the Minister of Finance, Ken Ofori-Atta, announced an increment in the tax from six to nine percent in the Supplementary Budget.
Ofori-Atta, in his mid-year budget presentation to Ghana’s Parliament, also warned that there are tough times ahead as a result of the economic wreckage caused by the COVID-19 pandemic.
He said it is important Ghanaians keep the current government in power to continue with its strategies and measures outlined to restore the economy to health.
He announced that President Nana Akufo-Addo will, in the next few weeks, launch a GHS100 billion economic recovery programme.
YEN.com.gh earlier reported that Communications Minister, Ursula Owusu-Ekuful, has been instructed to suspend a directive to the Ghana Broadcasting Corporation to shut down three of its Digital Terrestrial Television channels.
The directive to the communications minister came from President Akufo-Addo through his director of communication for the presidency, Eugene Arhin.
In a statement issued on Thursday, July 23 the President requested that the decision be put on hold to allow for further consultation with stakeholders.
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