Telcos not being truthful with consumers on 9% CST charge – George Andah

Deputy Minister of Communications, George Andah has asserted that Telecommunication Service providers are not being truthful to their consumers in sharing information on their decision to charge 9% on all top-ups.

He says Telcos are misrepresenting the recent 3% increase in the Communication Services Tax (CST) by presenting it as a 9% increase to their consumers.

“From the 1st of July, when you recharge the message that you were getting seems to suggest that you were being deducted 9% because of the increase in Communication Services Tax, which is a total miscommunication or a total untruth,” he said.

He made the statement on Citi TV, at the back of a tussle between government and the Telcos on their decision to charge 9% on all top-ups as a result of government increasing CST from 6% to 9%.

According to the Deputy Minister, the Telcos are taking advantage of the situation to pass the whole 9% CST unto their customers as they were already shouldering the initial 6% CST prior to the increase.

“The effective increase in Communication Service Tax was 2.2%, so if indeed you wanted to say that it is because of the (CST) then that reduction should have been the 2.2% or the nominal 9% that increased. But they took advantage of the increase of 3% and then the 6% that they were passing unto the consumers they added it,” he added.

Explaining government’s position on the situation, the Deputy Minister said whiles government is not necessarily against the Telcos passing the levies unto their consumers to increase profitability, government is against the Telcos not making things clear to the consumers.

“The issue that government had was, this 6% is between you and your consumer. If you think that the consumer is doing great business with you and you have decided to pay the 6% on the consumers behalf, if you are withdrawing the 6% to improve your profitability just tell them.”

He said the Telcos should tell their consumers the 9% deduction is as a result of the CST and not the increase since in actuality the increase is 2.2% and not 9%.

Communication companies beginning July started charging 9% upfront on every recharge made, citing increase in CST as a factor.

This has caused a rift between the Telcos and government, which says the deduction should be made incrementally instead of being made upfront.

Government has cautioned Telcos to heed to the incremental deduction or risk punitive measures.

Government has also directed Telcos to rollover unused data instead of putting expiration limits on them.