Reduction in CST takes effect

The reduction in the Communication Service Tax (CST) from 9 per cent to 5 per cent takes effect from Tuesday, September 15.

The Finance Minister, Ken Ofori-Atta, announced in the 2020 midyear budget review that the reduction in the cost of CST is to enable consumers work remotely and utilize online services amid the coronavirus pandemic.

In a press release by the Chief Executive Officer of the Ghana Chamber of Telecommunications, Ken Ashigbey, on the eve of the implementation of the tax, the tariff adjustment programme “means when our customers pay the same price they would enjoy more, which is in line with the government measures in alleviating cost burden on citizens in the work of the global pandemic”.

“The modifications will represent 5%  CST charge and would be applied through a tariff adjustment on the products and services of our members, in accordance with the passage of the Communication Services Tax (amendment) Act, 2020 (Act 1025).

“The tariff adjustment program means when our customers pay the same price they would enjoy more, which is in line with the Government’s measures in alleviating cost burden on citizens in the wake of the global pandemic.

“The smooth reconfiguration of service providers’ systems to accommodate the commercial and technical requirements, is a testament of the effective dialogue and stakeholder engagements led by the Finance Ministry as well as our supervising Ministry and agencies,” the statement said.

By Regina Saka|3news.com|Ghana