Stop Upfront Deduction Of “Talk Tax” – Gov’t Directs Telcos

The Government of Ghana has directed Mobile Network Operators to stop the upfront deduction of Communications Service Tax(CST) with immediate effect.

The directive was captured in a letter the Ministry of Communications wrote to the National Communications Authority (NCA).

“To minimize the negative impact of the current mode of deduction of the CST, the Ministry of Communications hereby directs the immediate implementation of the following measure: CST should be treated the same way VAT, NHIL, GETFUND levy and all other taxes and levies imposed on entities doing business in Ghana are treated. This extraordinary upfront deductions of CST and notification of same to the subscribers must stop with immediate effect,” the Ministry of Communications directed.

The Ministry has also directed that “all unused data and voice bundles purchased by subscribers do not expire and must be rolled over with the next recharge. MNOs will be subjected to strict compliance with exiting Quality of Service (QoS) standard to ensure value for the subscribers’ money in accordance with their licence obligations.”

With the increment of the CST from 6% to 9%, telcos in the country introduced an instant deduction of the tax, a situation that generated a huge public outry.

Read the full statement below…

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