Government has reduced the Communication Service Tax (CST) from 9 percent to 5 percent.
This is to last for six months, according to the Minister of Finance, Ken Ofori-Atta.
The Finance Minister said this on Thursday, July 23, 2020, when he presented the mid-year budget review in Parliament.
“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.”
“We will count on the Telcos to match this reduction in the CST by reducing their tariffs. This is important for our youth, entrepreneurs, and the burgeoning FINTEC industry,” he added.
Communication Service Tax and its journey so far
The government in 2019 increased the communication service tax from 6% to 9% over what it says was to create a viable technology ecosystem in the country.
Following the implementation of the CST, the Communications Ministry accused the mobile telecommunications companies of milking consumers over their mode of charging.
The Minister for Communications, Ursula Owusu-Ekuful at the time also demanded that all unused data and voice bundles purchased by subscribers to be immediately rolled over upon the next recharge.
Others rather accused the Ministry of Communication of extortion in the directive to telcos to cease the instant deduction of the Communications Service Tax (CST).
The Telcos were subsequently directed to stop the upfront deduction of the tax.
The tax which was introduced in 2008 is charged on the use of communication services in the country including voice calls.
