In correspondence dated September 4, 2019, the Ghana Revenue Authority (GRA) directed the
telecom operators to begin collecting from consumers the revised tax on
communication services (CST).
Contained in the amending finance law of 2019, the tax which was 6% has increased to 9%. When
presentation of the text of the law to parliament on July 29, the Minister of Finance, Ken Ofori-Atta, had
explained that this tax increase was for the purposes of technological and security progress.
“The government proposes to increase the tax to 9% in order to lay the foundations for the creation of an ecosystem
viable technology to identify and combat cybercrime, protect users
information technology and to combat money laundering and other financial crimes",
supported Ken Ofori-Atta.
But the news had angered the Chamber of Telecommunications which had denounced a
increase in the cost of subscribers' voice and Internet communications.
The CST will indeed further increase the tax burden on consumers of services
Telecoms of Ghana, already subject to Value Added Tax, National Health Insurance Tax
(NHIL) and the Ghana Education Trust Fund (GETFL). The NHIL is set at 2.5% while
like the GETFL. VAT is 12.5%. This tightening around consumers' pockets,
telecom companies fear that it will affect their power to communicate and, by extension, their income.
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