Home Business Telcos agree to stop upfront CST deductions

Telcos agree to stop upfront CST deductions

128
40

Telecommunication companies in Ghana have resolved to stop the upfront deductions of the Communications Service Tax (CST).

This new development was announced in a statement issued by the Ghana Chamber of Telecommunications.

According to the Chamber the telcos will rather apply the tax through a tariff adjustment programme which will take effect on November 26, 2019.

The Chamber in the statement explained that despite the arrangement to stop upfront deductions, the GRA will still calculate and account for the CST as an upfront charge.

“For the past few weeks, there have been several discussions on the implementation of the CST. The members of the Ghana Chamber of Telecommunications will like to reassure its customers that we have acted in good faith considering our intentions to engage all relevant agencies following the passage of the CST Amendment Law. The mobile industry considers the upfront deduction legal and implemented the current CST based on alignment with how the Ghana Revenue Authority (GRA) calculates and charges the CST.

“However, we understand stakeholders’ concerns and have aligned on the current agreement to implement a price increase to pass on the tax instead of upfront deductions. It is worth noting that despite this arrangement to stop upfront deductions, GRA will still calculate and account for the CST as an upfront charge.”

The Chamber has also decided to give extra value to reward customers for their loyalty.

“Subsequently mobile operators will notify their customers individually in the ensuing days,” the statement said.

The Minister of Communications Ursula Owusu-Ekuful last two weeks at a press conference said the telcos were being disingenuous in their handling of the CST increment which they hitherto did not deduct upfront from recharges made by consumers.

She made this comment after consumers of mobile telecommunications services said they were still being charged the 9 percent Communication Service Tax  (CST) upfront on recharges, more than a week after the Ministry of Communication demanded a halt to the practice.

“The Ministry met mobile network operators and the regulator on 7th and 8th October 2019 on this unusual practice which flew in the face of industry experience and we were informed by MNOs that they took advantage of the 3% increase to pass on the entire tax to subscribers.

“GETFUND, NHIS levy and all other taxes 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,” the Minister said.

While the Minister demanded an immediate stop to the practice, the directive was not met favourably by the telcos which were still in discussions with the government to decide on a number of issues surrounding the implementation of the CST.

 

40 COMMENTS

  1. I抦 impressed, I have to say. Actually rarely do I encounter a blog that抯 both educative and entertaining, and let me let you know, you could have hit the nail on the head. Your thought is outstanding; the difficulty is something that not sufficient people are speaking intelligently about. I am very glad that I stumbled across this in my seek for something relating to this.

  2. An impressive share, I simply given this onto a colleague who was doing a little evaluation on this. And he in fact purchased me breakfast because I discovered it for him.. smile. So let me reword that: Thnx for the deal with! But yeah Thnkx for spending the time to debate this, I really feel strongly about it and love reading extra on this topic. If attainable, as you develop into expertise, would you mind updating your weblog with extra details? It’s highly useful for me. Big thumb up for this weblog post!

  3. I just want to tell you that I’m very new to blogging and site-building and absolutely liked you’re blog site. Almost certainly I’m going to bookmark your blog post . You definitely come with beneficial posts. Thanks a bunch for sharing your web-site.

  4. I抦 impressed, I must say. Really hardly ever do I encounter a blog that抯 both educative and entertaining, and let me tell you, you may have hit the nail on the head. Your idea is outstanding; the difficulty is one thing that not sufficient people are speaking intelligently about. I am very pleased that I stumbled throughout this in my seek for something referring to this.

  5. Youre so cool! I dont suppose Ive learn something like this before. So nice to find someone with some authentic thoughts on this subject. realy thank you for starting this up. this web site is one thing that’s wanted on the web, somebody with just a little originality. useful job for bringing something new to the web!

  6. I抎 should check with you here. Which isn’t one thing I usually do! I take pleasure in studying a put up that may make people think. Also, thanks for permitting me to comment!

  7. Great post. I used to be checking continuously this weblog and I’m impressed! Very useful information particularly the closing part 🙂 I care for such info a lot. I was looking for this particular info for a long time. Thank you and best of luck.

  8. Hi there! This post could not be written any better! Reading through this post reminds me of my old room mate! He always kept chatting about this. I will forward this page to him. Pretty sure he will have a good read. Thank you for sharing!

  9. Thanks for expressing your ideas in this article. The other thing is that each time a problem develops with a computer system motherboard, individuals should not take the risk of repairing the item themselves because if it is not done right it can lead to irreparable damage to the entire laptop. In most cases, it is safe to approach your dealer of the laptop for the repair of that motherboard. They’ve already technicians who definitely have an knowledge in dealing with pc motherboard issues and can make the right diagnosis and conduct repairs.

  10. I know this if off topic but I’m looking into starting my own blog and was wondering what all is required to get set up? I’m assuming having a blog like yours would cost a pretty penny? I’m not very web savvy so I’m not 100% positive. Any suggestions or advice would be greatly appreciated. Many thanks

  11. I have been exploring for a bit for any high-quality articles or blog posts in this kind of area . Exploring in Yahoo I finally stumbled upon this web site. Reading this info So i¡¦m glad to express that I’ve an incredibly good uncanny feeling I came upon exactly what I needed. I such a lot without a doubt will make sure to do not put out of your mind this website and provides it a glance on a constant basis.

  12. Very good blog! Do you have any hints for aspiring writers? I’m planning to start my own site soon but I’m a little lost on everything. Would you recommend starting with a free platform like WordPress or go for a paid option? There are so many choices out there that I’m totally confused .. Any recommendations? Cheers!

  13. Hi there! I know this is kinda off topic but I was wondering which blog platform are you using for this website? I’m getting tired of WordPress because I’ve had issues with hackers and I’m looking at options for another platform. I would be awesome if you could point me in the direction of a good platform.

  14. One more important issue is that if you are a senior citizen, travel insurance regarding pensioners is something you need to really take into account. The elderly you are, a lot more at risk you happen to be for having something terrible happen to you while abroad. If you are definitely not covered by a number of comprehensive insurance policies, you could have many serious issues. Thanks for revealing your guidelines on this website.

  15. With havin so much content do you ever run into any issues of plagorism or copyright infringement? My website has a lot of completely unique content I’ve either written myself or outsourced but it appears a lot of it is popping it up all over the web without my agreement. Do you know any methods to help reduce content from being stolen? I’d genuinely appreciate it.

  16. I love your blog.. very nice colors & theme. Did you design this website yourself or did you hire someone to do it for you? Plz reply as I’m looking to create my own blog and would like to know where u got this from. many thanks

LEAVE A REPLY

Please enter your comment!
Please enter your name here