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GHANA WEATHER

Telcos to stop upfront deduction of 9% CST tax from November 26

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Telecommunication companies in the country will from Tuesday November 26,  stop the upfront deduction of the Communication Service Tax (CST).

A  statement  from the Ghana Chamber of Telecommunication said it will complete the reconfiguration of its systems to accommodate the commercial and technical requirements for the cessation of the deduction next week to bring respite to consumers.

The decision by the Chamber to stop upfront deductions follow an agreement with the government to apply the 9 percent CST as a price increase instead of as an upfront deduction on recharge.

Currently, customers are charged the 9 percent CST instantly when they top up airtime. The statement says subscribers will be notified on completion of the exercise for transparency on the adjusted tariffs of their products and services as well as information on the post use of these services.

Following the implementation of the Communication Service Tax, the communication minister, Ursula Owusu, accused the telecommunications companies on draining the consumers over their mode of charging.

“The Ghana Chamber of Telecommunications wishes to notify mobile and fixed subscribers that effective Tuesday 26th November 2019, Telecommunications Operators will cease upfront deductions of 9% CST charge and apply the tax through a tariff adjustment on their products and services. Following our agreement with the government to apply the 9% CST as a price increase instead of as an upfront deduction on recharge.”

“The reconfiguration of our systems to accommodate the commercial and technical requirements is due to be completed by the 26th of November 2019. This will offer customers a smooth transition and a better experience,” the statement said.

The public will be communicated more on the commencement of the exercise.

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