Telcos to stop upfront CST deductions
The brouhaha over the decision to charge the Communications Service Tax (CST) upfront has finally been resolved after the telecommunication companies agreed to stop the upfront deductions
A statement issued by the Ghana Chamber of Telecommunications stated that the telcos will rather apply the tax through a tariff adjustment programme which takes effect November 26, 2019.
The statement added that mobile industry considers the upfront deduction legal and implemented the current CST based on alignment with how the Ghana Revenue Authority (GRA) calculates and charges the CST but has decided to stop upfront deduction out of good faith.
“The members of the Ghana Chamber of Telecommunications will like to reassure its customers that we have acted in good faith considering our intentions to engage all relevant agencies following the passage of the CST Amendment Law.
“The mobile industry considers the upfront deduction legal and implemented the current CST based on alignment with how the Ghana Revenue Authority (GRA) calculates and charges the CST.
“However, we understand stakeholders’ concerns and have aligned on the current agreement to implement a price increase to pass on the tax instead of upfront deductions. It is worth noting that despite this arrangement to stop upfront deductions, GRA will still calculate and account for the CST as an upfront charge.”
The Minister of Communications, Ursula Owusu-Ekuful, at a press conference two weeks ago directed the telcos to stop charging the CST upfront saying they were being disingenuous in their handling of the CST increment.