MNOs now charging Ghanaian subscribers 9% CST

Mobile network companies in Ghana have commenced the implementation of the government’s new increased 9 per cent communication service tax. This means subscribers will now be paying more for talking and other communications related activities on their networks.

This falls in line with the Section 2, subsection (1) of the Communications Service Act, 864 which stipulates that “The tax shall be paid together with the electronic communications service charge payable to the service provider by the user of the service”.

Complying with the government directive, three major network operators including AirtelTigo, MTN and Vodafone have duly informed customers about the new charges and have even provided a prices chart to guide customers.

Ghana’s parliament in July this year approved the increment of the Communication Service Tax which previously  stood at 6 per cent to the current 9 per cent, after Ken Ofori Atta, the minister in charge of finance had officially proposed to the house during his presentation of the 2019 mid-year budget review.

The finance minister believes that the increment will go a long way to assist in developing the foundation for a viable technology ecosystem in the country by putting in systems to identify and combat cyber crime, protect users of information technology and combat money laundering and other financial crimes.

Last year the government through the mobile network operators raked in a total amount of GHS 420 million, representing a 27.7 per cent increase from the estimated GHS 304 million accrued in 2017.

In 2018 MNOs also paid a GHS 1.9 billion in taxes to the state and made capital expenditure of over GHS 582 million, making Ghana mobile telecom industry one of the most important contributors to the public purse as well as being a key instigator of economic growth.

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