25.8 C
Accra
Thursday, August 11, 2022

Telcos meet over government’s directive on Communications Service Tax

Must Read

Resign your position on State Institutions to allow for investigation – Vitus Azeem to Labianca CEO

Anti-Corruption campaigner, Vitus Azeem says has called on the owner of Lablanca group of Companies and member of Council...

Special Prosecutor’s ‘corruption’ report on Labianca is ‘hollow’ – Commissioner of Customs

SOURCE: GRAPHICONLINE The Commissioner of the Customs Division of the Ghana Revenue Authority (GRA), Colonel Kwadwo Damoah, has accused the...

NAVASCO UE/R: “No food is leaving the hall” policy not in force due to lack of space

By: Peter Agengre In a bid to give back to society, the old students association of Navrongo Senior High School...

 The telecommunication companies are currently in a crunch meeting to come out with an official stance on government’s directive on the upfront deductions of the Communications Service Tax (CST).

The meeting by the Chamber of Telecommunications is also to consider the directive on the roll over of data.

Since October 1, 2019,  Mobile Telecommunication Companies have been charging 9% on every data purchased by customers following an increase in the CST from 6 to 9% announced by the Minister of Finance during the Mid-Year Budget Review.

Per every GH¢1 of recharge data purchased,  9% CST tax is deducted, leaving the customer with  0.93 of the data purchased.

This has  been received with a  public backlash with the Ministry of Communication directing that the direct deductions should be stopped.

Image result for Telcos meet over government's directive on Communications Service Tax
Minister of Communications, Ursula Owusu.

The Minister of Communications, Ursula Owusu at the Meet-The-Press Series yesterday (October 15) directed that henceforth the CST should not be deducted upfront.

Instead, it should be done just as VAT, NHIL and GETFUND levies.

She also added that all unused data purchased must be rolled over and threatened the revocation of licenses if the Telcos fail to do so.

The Telcos have been silent on the matter but are expected to give their stance after the crunch meeting which will end soon.

Meanwhile, a  tax analyst , Dr. Ibrahim Bedi has warned of an imminent collapse of the Telecommunications industry and its attendant job losses if Telcos fail to comply with indirect CST deductions as directed by government.

He, however, believes the current direct CST deductions by the Telecos are legal.

Dr Bedi said extensive stakeholder engagement is the best way to resolve the issue amicably before it gets out of hand.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Resign your position on State Institutions to allow for investigation – Vitus Azeem to Labianca CEO

Anti-Corruption campaigner, Vitus Azeem says has called on the owner of Lablanca group of Companies and member of Council...

Special Prosecutor’s ‘corruption’ report on Labianca is ‘hollow’ – Commissioner of Customs

SOURCE: GRAPHICONLINE The Commissioner of the Customs Division of the Ghana Revenue Authority (GRA), Colonel Kwadwo Damoah, has accused the Office of the Special Prosecutor...

NAVASCO UE/R: “No food is leaving the hall” policy not in force due to lack of space

By: Peter Agengre In a bid to give back to society, the old students association of Navrongo Senior High School (NAVASCO) in the Upper East...

ECOWAS condemns violence in parts of Sierra Leone as curfew is imposed

Leaders of the West African regional bloc ECOWAS have condemned the violence that erupted in various parts of Sierra Leone on Wednesday. Sierra Leoneans have...

Ghana’s vaccine production roadmap sets sail

By Yvonne Atilego A €2.84 million project for the institutional and technical strengthening of the Food and Drugs Authority (FDA), towards Vaccine production has been...

More Articles Like This