Telcos Ordered To Stop Notifying Subscribers Of CST Deductions

Telcos Ordered To Stop Notifying Subscribers Of CST Deductions.

The Ministry of Communication has directed telecommunications companies to stop notifying subscribers when the Communication Service Tax (CST) on airtime purchased is deducted.

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The directive must be obeyed with immediate effect, a statement from the ministry signed by the sector minister, Mrs Ursula Owusu-Ekuful said.
Telcos were to also stop upfront deduction of the CST, the statement added.

This comes on the back of the decision of telcos to get consumers to appreciate the effect of CST following the increment of the Communication Service Tax from an initial 6% to 9% effective September.

Telcos Ordered To Stop Notifying Subscribers Of CST Deductions

According to the Communication Ministry, the CST has always been in existence, but the telcos were making upfront deductions when the tax was pegged at 6%.

The ministry has therefore instructed:

“CST should be treated the same way VAT, NHIL, GETFUND Levy and all other taxes and levies imposed on entities doing business in Ghana are treated. This extraordinary upfront deduction of CST and notification of same to subscribers must stop with immediate effect.”

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This directive, the ministry stated is aimed at minimizing the negative impact of the CST deduction.

They also asked the telcos to also ensure “all unused data and voice bundles purchased by subscribers do not expire and must be rolled over with the next recharge.”

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The ministry further reiterated its commitment to ensuring Mobile Network Operators (MNOs) comply with the Quality of Service standards set for them.

“Kindly ensure that these measures take immediate effect,” the statement emphasized.


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