Following the increment in the Communication Service Tax (CST), from 6% to 9% by the Government of Ghana, telecommunication networks in Ghana also increased their internet data and call prices. The telcos even went ahead to ensure an upfront deduction of the increased amount right after making an airtime purchase, which the government kicked against, forcing them only to inculcate it into their service rates.
The Government has announced a reduction of the Communication Service Tax from 9% to 5%, which the Minister for Finance gave more details on in the mid-year budget presented to Parliament. The move, expected to ensure a reduction in the high cost of data and call prices — which was a significant concern of many citizens — is said to be part of the Government’s Covid-19 relieve measures.
Nearly two months after the announcement of the reduction, the telecommunication networks are finally set to reduce their internet data and call prices. The telcos will now be taking away their initial price increment and further reduce the price by 1% in comparison with the price before the initial CST increment.
Customers have not yet begun seeing the tax reduction because it has not yet been rolled out. However, Ghana’s largest network, MTN Ghana, has already started sending its customers notices of the price reduction, which they intend to begin rolling out on September 15, 2020. Other telcos would or have already started informing their customers too.
Therefore, a few days from now, all customers will begin seeing a reduction in their internet data and call prices, as it begins to reflect in all their airtime purchases.
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