MTN, Vodafone, AirtelTigo and Glo who are the Mobile Network Operators (MNOs) have had their umbrella body, the Ghana Chamber Of Telecommunications announced in congruent with the sector Minister’s directive to shun the upfront deduction of the 9 percent Communication Service Tax (CST).
The Tax was announced by the government in the mid-year budget review and was effective September 1. However, the mode of implementation did not go well with the Communications Ministry which had the Minister Mrs. Ursula Owusu Akuffo direct the MNOs to rescind their decision.
It has been agreed that instead of an upfront deduction, there will be an upward tariff adjustment to meet the tax.
Mr. Ken Ashigbey the CEO of the chamber through a statement said “The price increase will take effect by November 26th, 2019, as the industry requires a number of weeks to complete the reconfiguration of our systems to accommodate the commercial and technical requirement that the exercise necessitates ensuring an even smooth experience for customers.’’
The Chamber stated that during the transition period from upfront charges to the new price increase, mobile network operators will reward mobile subscribers with extra value. Telecom operators will update their mobile customers in the ensuing days.