Stop deducting CST upfront – Govt directs telcos

The Communications Ministry has directed telecommunication companies in the country to immediately stop the upfront deduction of communications service tax.

A statement by the ministry Friday said the implementation of the tax should be treated like the National health Insurance levy and the GETFUND.

The  statement added the direct deduction of the tax increases the profit margins of telecom firms in the country.

It comes after the Chairman of the Finance committee of Parliament, Dr. Mark Assibey-Yeboah accused telecommunications companies in the country of bad faith regarding the implementation of the  Communications Service Tax, (CST).

The tax which was reviewed upward from 6 to 9 percent now sees credits of customers deducted at the point of recharge.

The move has resulted in complaints from a wide section of the public against the increment by government.

Speaking to Starr News, after the article 4 review meeting with the International Monetary Fund, Dr. Assibey-Yeboah said the move by the telcos is to make government unpopular.

“Somebody is just being disingenious because it was 6 percent and now it is 9 percent…previously we didn’t state it explicitly that if you bought credits of 10 cedis 6 percent is not for you..as to why they didn’t state it I cannot explain.

“But now somebody thinks that to make government unpopular I have to state the full extent of the CST. So now people are complaining. You were still getting 9 cedis 40 pesewas except that it was not being stated,” Dr. Assibey-Yeboah told Starr News’ Ibrahim Alhassan.

Dr. Assibey-Yeboah, however, disclosed government will not introduce or increase taxes in the 2020 budget.