Telcos wrong to deduct CST upfront – Former dep. Communications Minister writes

A former Deputy Communications Minister Ato Sarpong says telcos are wrong to make upfront deductions of the Communications Service Tax anytime subscribers buy call credit.

He explained his position in an article obtained.

Ato Sarpong was at pains to stress the need to de-politicize the implementation of the Communications Service Tax, maintaining the controversy is ‘more of a Finance and Accounting Debate than a political one’.

The Communications Ministry recently gave directives to telcos on the implementation of the 9% CST.

The controversial directives are as follows:

– 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. The extraordinary upfront deduction of CST and notification of same to subscribers must stop with immediate effect.

– All unused data and voice bundles purchased by subscribers do not expire and must be rolled over with the next recharge.

– MNOs will be subject to strict compliance with existing Quality of Service (QoS) standard to ensure value for money in accordance with their licence obligations.