Public Agenda NewsPaperPublic Agenda NewsPaper
  • General News
  • Politics
  • Business
  • Health
  • Development Agenda
  • World News
  • Features & Opinions
  • Election watch
  • Editorial
Font ResizerAa
Public Agenda NewsPaperPublic Agenda NewsPaper
Font ResizerAa
  • General News
  • Politics
  • Business
  • Health
  • Development Agenda
  • World News
  • Features & Opinions
  • Election watch
  • Editorial
Search
  • General News
  • Politics
  • Business
  • Health
  • Development Agenda
  • World News
  • Features & Opinions
  • Election watch
  • Editorial
Follow US
Breaking NewsBusinesstop stories

Telecoms chamber wants ‘Talk Tax’ scrapped

Latifa Carlos
Last updated: August 14, 2020 7:23 am
Latifa Carlos
Share
4 Min Read
Ken Ashigbey, Chief Executive Officer of the Ghana Chamber of Telecommunications
SHARE

The Ghana Chamber of Telecommunications has welcomed the reduction in the Communications Service Tax (CST) but urged government to scrap the tax since “the CST is targeted at sectors that are more productive but vulnerable.”

The chamber welcomed government’s decision to reduce the CST and referred to it as a good measure that would help reduce the cost of telecommunication services for customers in the short term and aid stimulate growth in the longer term.

Chief Executive Officer of the Ghana Chamber of Telecommunications Ing. Kenneth Ashigbey in an interview with this reporter said the reduction would make it easier for businesses to use internet charges to operate effectively and efficiently.

More Read

Traditional Medicine Council Pushes for Stronger Standards and Integration
No region will be left behind in Big Push roads plan- President Mahama
Gov’t must take decisive steps to tackle galamsey – Acting CJ
GoldBod donates GH¢5m, five pickups to Lands Ministry for galamsey fight
2026 WCQ: Djiku’s strike seals win for Ghana over Mali to boost qualification chances

Mr Ashigbey indicated that the reduction of the tax by 5 percentage points would help businesses and resolve in turning the economy around as quickly as possible.

“As businesses function smoothly, it will stir growth because the Internet services are used for businesses and that will help the recovery of the economy”, he stressed.

The CEO of the Ghana Chamber of Telecommunications explained that “if you buy 10cedis for ‘X’ minutes of calls, you will be able to do more than you previously were doing. Meaning, per second charge or megabyte charge or SMS charge; would come down.”

“One of the arguments we have made is that industry-specific tax like the CST distorts the market”. He was hopeful that the reduction would impact positively on consumers and go a long way to reduce their communication costs and overall cost of business.

Frequent changes in rates costly

Meanwhile, Mr Ashigbey expressed worry over the cost implications of the frequent changes in the CST rates.

The introductory rate was 6 per cent, it was increased to 9 per cent and now to 5 per cent.

“Anytime there was a change in percentage figure (be it an increase or a decrease), there was a need for operators to engage their members. Each engagement brought an extra cost to their operations.

“We did an initial engagement that was easier; where it was high yet, in 2019, it was increased to 9 percent and we had to engage members again; it has been decreased; it means we will have to bear another cost to engage our members”, Mr Ashigbey lamented.

To avert the unplanned costs associated with the changes , Mr Ashigbey hoped that the CST would remain at five percent for a longer period or “better still cancelled completely.”

Background of CST

The Communication Service Tax (CST) was introduced in 2008 at a rate of six percent to raise additional revenue from communications services rendered by mobile operators. The tax is levied on charges payable by consumers for the use of communication services.

In 2018, the tax brought in a total of GH¢420 million, representing a 27.7 percent increase from the estimated ¢304 million accumulated in 2017. The rate was increased to 9 percent in 2019. However, during the recent mid-year budget review, government announced a 5 percent decrease which would take place effective September 15, 2020.

Source: thefinderonline.com

Share This Article
Facebook Whatsapp Whatsapp Email Copy Link Print

Latest News

Eliminating Intra-African Trade Barriers no Longer Optional – AfCFTA Scribe
September 5, 2025
Judge reverses Trump administration’s cuts of billions of dollars to Harvard University
September 4, 2025
I’ll hold you to the June 2026 deadline – Mahama to Ofankor–Nsawam road contractor
September 3, 2025
Draft report on review of Constitution to be ready by October – CRC
September 3, 2025
GRNMA apologises to Health Minister over attacks
September 3, 2025
Shadows of Empire: The CIA, Kwame Nkrumah, and the Struggle for Ghanaian Sovereignty
September 3, 2025
Empowering Rural Women through environmental justice: GAGGA grantees convene in Accra
September 3, 2025

You Might Also Like

Breaking NewsDevelopment Agendatop stories

Birim North District Unveils Medium -Term Development Plan and More…

September 2, 2025
Breaking NewsGeneral Newstop stories

Chief Justice Getrude Torkornoo removed

September 1, 2025
Breaking NewsDevelopment Agendatop stories

ABANTU Engages Unsuccessful Women Parliamentary Candidates to Strengthen Political Participation in Ghana

August 28, 2025
Breaking Newstop storiesWorld News

Pakistan unveils 7-point plan for Gaza peace at OIC summit

August 26, 2025

About Us

Public Agenda is fou­nded and owned by Pu­blic Agenda Communic­ations.

Public Agenda was founded as a public interest Me­dia entity. Its Visi­on is to contribute to building a well-i­nformed society where accurate informati­on dissemination is the cornerstone of a democratic, just and equitable society.

Its mission is to inform, guide and bui­ld responsible citiz­enship and accountab­le decision making and strive for excell­ence in the media in­dustry. Public Agenda Communications is managed by a Board of Directors.

Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?