Talk tax goes up by 9 percent

July 30, 2019 / Comments (0)


Consumers will now have to brace up to pay more for usage of communication services to their respective telecommunication networks following government’s decision to increase it from six percent to nine percent approximately fifty percent increase.

This was contained in the 2019 Mid-Year Review Budget presented to parliament by the Finance Minister, Ken OforI-Atta on Monday.

He explained to Members of Parliament that 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.

The Communication Service Tax (CST) was introduced in 2008 at an ad valorem rate of six percent. The tax is levied on charges payable by consumers for the use of communication services.

Government proposes to increase the tax to nine percent to develop the foundation for the creation of a viable technology ecosystem in the country. This will comprise amongst others putting in systems to identify and combat cyber crime, protect users of information technology and combat money laundering and other financial crimes.

By the Act, at least 20 percent of the revenue generated from the tax shall be used to finance the National Youth Employment Programme.

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