Audio By Carbonatix
The Ghana Chamber of Telecommunications had warned that the cost of telecom services could rise if the Communication Service Tax (CST) Amendment Bill currently before Parliament is passed.
A statement from the Telecom Chamber said the bill imposes a six percent tax in addition to the existing surcharge of six cents per minute which government collects on international calls.
Already mobile network operators pay to government 15 percent VAT and National Health Insurance Levy (NHIL) on incoming international calls.
Besides, the Ministry of Finance is considering a further five percent Stabilization Levy on telecommunications services.
CST or Talk Tax was introduced as a Consumption Tax in 2008 to raise revenues for government from subscribers by taxing them six per cent on the value of services used. In practice, however, network operators absorb this tax as well because of competition.
The statement said the telecoms industry is the only sector that has maintained almost zero inflation in the Ghanaian economy consistently for more than 36 months despite rising inflation in other sectors.
“If Parliament passes the CST Amendment Bill it would lead to a substantial increase in the cost of telecommunication services, if operators pass on the cost to consumers,” it warned.
“On the other hand, if mobile operators absorb the new taxes, it would make it difficult for them to justify the large investments required to expand infrastructure to meet the fast-growing demand for telecom services, particularly data,” the Telecom Chamber lamented.
Meanwhile some Ghanaians, both here and abroad, have rejected the attempt to increase taxes on incoming international calls because of the eminent burden it would place on Ghanaians.
Ghanaians who live in the United States of America are particularly worried because they claim it is now more expensive to call Ghana than to call Nigeria so they are already apprehensive about calling family members in Ghana.
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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
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