Effective October 1, 2019 Ghanaians Will Now Pay 9% Communication Service Tax Every Time They Recharge

Beginning October 1, 2019, a 9% levy will be charged mobile phone users for communication services in Ghana.

The Communication Service Tax (CST) was previously set for 6%, however, it was raised to 9% during the presentation of the 2019 Mid-year Budget Review by the Finance Minister.

The Finance Minister, Ken Ofori-Atta, told Parliament that the levy was increased in a bid to build a viable technology ecosystem in Ghana.

MTN Ghana has also circulated the information below on social media.

Read also: Nigeria’s Parliament Is Proposing 9% Communication Service Tax In Place of 7.5% VAT And Digital Tax.

A viable technology ecosystem, according to the Minister, involves identifying and combating cybercrime, protecting users of information technology and combating money laundering and other financial crimes.

The Ghana Chamber of Telecommunications explained the implementation of the new levy thus: For every GH¢1 of recharge purchased, a 9% CST fee will be charged leaving GH¢0.93 for the purchase of products and services.

“Dear customer, with the increase in Communications Service Tax — CST to 9%, effective 1st October 2019, CST of 9% will be applied to every recharge. Thank you,” Vodafone Ghana has informed its subscribers.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world