By Kofi Ahovi
The Communication Service Tax (CST) has so far accrued GH¢26 million for the first quarter of this year.
The figure is 19% more than the GH¢22 million collected for the same period last year.
However, the amount collected is a million Ghana cedis less than the projected GH¢27 million target.
The Value Added Tax (VAT) Service responsible for the collection of the tax has targeted GH¢132 million for the end of the year against the GH¢100 million targeted for last year, despite its failure to meet that target.
According to VAT service, this was due the lack of equipment to monitor the traffic of telecom companies.
This challenge should be resolved with the new monitoring system, Intelligence Signal Management System, being introduced by the National Communications Authority (NCA).
The Communications Service Tax (CST) is a tax levied on charges for the use of communications service that are provided by communications operators. It came into force in June 2008 to boost revenue from the fast growing communications service sector.
The tax is paid by consumers to communication service providers and attracts 6% ad-valorem charges on internet, broadcasting, cable, maritime and satellite services as well as other services provided through transmissions or signals to produce sounds or visual images.
CST is imposed under Section1 of the Communications Service Tax Act 2008, (Act 754). It is paid by consumers to the communications service providers, who in turn pay all CST collected to the VAT Service on a monthly basis. The VAT Service is required under the law to pay the CST collected into the Consolidated Fund.
The Communication Service Tax (CST) has so far accrued GH¢26 million for the first quarter of this year.
The figure is 19% more than the GH¢22 million collected for the same period last year.
However, the amount collected is a million Ghana cedis less than the projected GH¢27 million target.
The Value Added Tax (VAT) Service responsible for the collection of the tax has targeted GH¢132 million for the end of the year against the GH¢100 million targeted for last year, despite its failure to meet that target.
According to VAT service, this was due the lack of equipment to monitor the traffic of telecom companies.
This challenge should be resolved with the new monitoring system, Intelligence Signal Management System, being introduced by the National Communications Authority (NCA).
The Communications Service Tax (CST) is a tax levied on charges for the use of communications service that are provided by communications operators. It came into force in June 2008 to boost revenue from the fast growing communications service sector.
The tax is paid by consumers to communication service providers and attracts 6% ad-valorem charges on internet, broadcasting, cable, maritime and satellite services as well as other services provided through transmissions or signals to produce sounds or visual images.
CST is imposed under Section1 of the Communications Service Tax Act 2008, (Act 754). It is paid by consumers to the communications service providers, who in turn pay all CST collected to the VAT Service on a monthly basis. The VAT Service is required under the law to pay the CST collected into the Consolidated Fund.
Comments