The mobile telecommunication companies’ “unprecedented” mode of implementing the Communication Service Tax (CST) is making the government unpopular, the Communications Minister has said.
Ursula Owusu-Ekuful says it appears to be a deliberate attempt on the part of the telcos.
She said on JoyNews’ PM Express on Monday that the telecommunication operators “may deny it but that is what has happened.”
She added that the telcos are acting on the assertion that if the government “won’t give them at least four weeks [before the imposition of the 3% increment in the CST takes effect,] they would do it [pass it on to consumers] in the most painful manner.”
The mobile telcos began an upfront deduction of 9% from credit recharges from October 1, 2019, after the government increased the CST from 6% to 9%.
The Ministry, however, believes the tax should be deducted when consumers make use of services like calls and browsing – like other taxes are treated.
This has created a standoff between the telcos and the Ministry.
The telcos are asking for at least four weeks to reconfigure their systems to meet the demand of the Ministry. Minister, Ursula Owusu, however, believes this can be done in 48 hours, “if the operators put their mind to it.”
Meanwhile, consumers have taken to social media and called into radio stations to complain about the tax implementation. Consumers who buy GH¢10 worth of airtime for internet bundle, must now purchase higher than that.
The Minister says this has caused “disaffection” for the government.
Some have even taken it to her personally. She said she receives text messages describing her as a “wicked witch.”
Mrs. Ekuful says she explains to such persons that she did not impose the tax. Taxes are imposed by Parliament on the request of the Finance Minister, she said.
What is the purpose of the CST?
The government says it wants to increase cybersecurity and protect consumers’ data and the 3% increment would go a long way to help that.
According to Deputy Communications Minister Vincent Odotei, the CST is also going into increasing network access to the entire country.
The government’s target, he said, is to cover the country by December 2020.
“How can we do all these when we don’t have the money,” he said in an interview with JoyNews.
Latest Stories
-
NGO engages herbal medicine producers under its biodiversity project
5 minutes -
Former president of Ghana Association of Banks urges government to reduce stake in banks
19 minutes -
Robert Klah pledges more education for musicians on TGMA rules
34 minutes -
Cote d’Ivoire withdraw as host of U-20 AFCON weeks before kick-off
53 minutes -
African quartet to pocket USD 9.55M participation fee for FIFA Club World Cup
1 hour -
Black Stars Management Committee members are currently not being paid – Sports Minister
1 hour -
Pan-Africanist Prof Lumumba to speak at UEW Public Lecture Series on April 11
1 hour -
ECG assures customers of power restoration after rainstorm
1 hour -
GEXIM boss calls for accelerated empowerment of women in agribusinesses for Africa’s economic growth
1 hour -
President Mahama nominates new MMDCEs
2 hours -
Tuesday’s rainstorm causes havoc at Madina Technical Institute
2 hours -
Jay Q discloses why he hardly produces music for Ghanaian artistes in recent times
2 hours -
Adu Boahene’s alleged crime is strange– Sammy Ayeh
2 hours -
Turd Talks: Oh Joo returns with second comedy special
2 hours -
Government moves to revive NIB this year, pledges full recapitalisation
3 hours