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TALK TAX GENERATES GH¢ 21.6 M

By Fred SARPONG

Information available to Business Week indicates that the Communications Service Tax (CST), which was levied on charges for the use of communications services in the country has generated approximately GH¢21.6 million by the end September 2008.

The communication levy which was introduced barely six months ago recorded GH¢4.0 million in June, the first month it was introduced. This increases by GH¢2.3 million to GH¢6.3 million at the end of July 2008.

The CST pulled an amount of GH¢5.4 million at the end of August 2008. This went up by GH¢0.5 million representing 9.2% increase to reach GH¢5.9 million at the end of September 2008.

The amount was collected from the six licenced mobile operators in the country, namely Mobile Telecommunication Network (MTN), Tigo, OneTouch, Kasapa, Zain and Globacom. Also are Public/Corporate Data Operators, Providers of Radio (FM) broadcasting services, Providers of Free-on-air and Pay-per-view television services, (DStv and GBS), Internet Service Providers (ISPs) and other communications service operators.

Florence Asante, the Head, Public Affairs and Information Unit at the Value Added Tax (VAT) Service told Businessweek that the CST unit, which is responsible for collecting the tax, has been doing a good job by making sure that these operators pay the CST on time.

She indicated that the unit has not experience any difficulty mobilizing the tax.

The CST , equivalent to 6% of all communication value is imposed under section 1 of the Communications Service Tax Act 2008, (Act 754) and are charged on consumers any time they use services provided by communications service providers, who in turn pay all CST collected to the VAT Service on a monthly basis.

The CST is charged only by a communications service provider who has been granted a Class 1 Licence by the National Communications Authority (NCA) under the provisions of the National Communications Regulations 2003 (LI 1719).

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