Ghana's Telecoms Chamber says consumers will lose talk time value, here’s why

This according to the chamber is due to the proposed increment in the Communications Service Tax (CST) from six percent to nine percent.

Currently, telephone service consumers such as mobile phone users spend about 19.09 pesewas out of every GH¢1 worth of airtime on taxes.

The Increment

The Minister of Finance, Ken Ofori-Atta, on Monday, July 29, 2019, announced an increment in the CST from six percent to nine percent in Parliament.

Presenting the Mid-Year Fiscal Policy Review of the 2019 Budget Statement and Economic Policy and Supplementary Estimates of the Government of Ghana for the 2019 Financial Year, Mr Ofori-Atta explained that the increment was aimed at creating a viable technology ecosystem to, among others, identify and combat cybercrime.

“Government proposes to increase the tax to nine percent to develop the foundation for the creation of a viable technology ecosystem to identify and combat cybercrime, protect users of information technology and combat money laundering and other financial crimes.

“The increase will not be earmarked; however, the sharing ratio will be adjusted in such a manner that the national youth employment programmes continue to receive the same proportions as they are currently receiving,” he said.

Consumers reaction

The proposed increment in the CST has been met with mixed reactions from Ghanaians.

While some Ghanaians are at variance with the move, indicating that it is burdensome and therefore should be reversed, others believe it should be maintained because that was the surest way to capture majority of the people into the tax net to generate enough revenue for development.

For others, although the thinking behind the increment of the levy was a good one, the three per cent increment was outrageous and should be reviewed a little downwards.