The government has stated that it will sanction any telecommunications company that fails to comply with the directive to stop charging the Communication Service Tax (CST) upfront.
The government over the weekend ordered the telecommunication companies in Ghana to cease the instant deduction of the Communications Service Tax also known as Talk Tax.
The directive was captured in a letter the Communications Ministry wrote to the National Communications Authority (NCA).
Addressing the press Monday, the Communications Minister, Ursula Owusu-Ekuful reiterated government’s position demanding that the Telcos stop charging the CST upfront. She also accused the Telcos of robbing customers.
“It is an irregular way of deducting taxes because it flies against industry practice and so they should reconfigure their system to treat it the same way they treat other taxes and levies that they are required to collect and pass on. I don’t see how this can be an illegal directive.
“I am glad for the gentleman who informed me that he had bought credits this morning and the tax was deducted upfront, the regulator would have a conversation with the telcos and the requisite sanctions would be applied.
“If they want to continue doing business in this country they will respect our laws. All of them are multi-internationals…and they know better than to flout the laws of the jurisdictions that they operate,” the communications Minister said.