Former Communication Minister under the erstwhile Mahama administration, Dr. Edward Omane Boamah has urged Ghanaians to hold the telecos and government accountable for the 50% Communication Service Tax.
“Do not forget Government increased the Communication Service Tax (CST) by a whopping 50% few months ago. This increase is new and additional to your expenditure. That is, largely, the answer.” – Dr. Omane Boamah stated this in a Facebook post sighted by Awake News.
According to him, “The government wanted to hide the direct impact of the tax, so, they bullied the Telcos into accepting indirect deduction of the tax. However, the overall effect of the cost on the already overburdened consumer is the same (Direct or indirect tax deductions).”
Background:
If you can recall, government introduced an additional 3% increment of the Communication Service Tax that is making Ghanaians to have 9% of every call credit they buy deducted from their talk time.
In a press statement copied Awake News, the Union has expressed their regret that “the additional hardship imposed on the taxpayer by the increment in the Communication Service Tax (CST).”
“While governments across the world are working towards reducing the cost of communication services for citizens to drive innovation and advancement in the Information, Communication and Technology space, the increment in the CST apart from bringing untold hardships on the taxpayer, is a major disincentive to progress and innovation in the sector. Again, this has a far-reaching implication on the peoples’ constitutionally guaranteed right – freedom of expression.” – the statement said
Following the implementation of the policy from October 1, 2019, Ghanaians have 9% of every credit they buy deducted upfront from their talk time but the government said the action of the Telcos is making the government unpopular hence issued a directive through the Ministry of Communication to the Mobile Network Operators to stop passing on the 9% Communication Service Tax (CST) to subscribers.
Read the full statement:
WITHDRAW THE CST, IT IS A BURDEN ON THE TAXPAYER
The Taxpayers Union (TU) has noted with regret the additional hardship imposed on the taxpayer by the increment in the Communication Service Tax (CST).
While governments across the world are working towards reducing the cost of communication services for citizens to drive innovation and advancement in the Information, Communication and Technology space, the increment in the CST apart from bringing untold hardships on the taxpayer, is a major disincentive to progress and innovation in the sector. Again, this has a far-reaching implication on the peoples’ constitutionally guaranteed right – freedom of expression.
We have taken note of the directive by the Communication Minister to the Telecommunications Companies (Telcos). It is the view of the TU that the directive does not in any way ameliorate the plight of the taxpayer but rather seeks to conceal the effect of the tax on the taxpayer. It is our position that whether or not the payment of the tax is concealed from the taxpayer, the value is the same as the taxpayer will eventually be paying anyway.
We wish to place on record that the directive issued by the Communications Minister to the Telcos is illegal as she lacks the locus to issue directives on the implementation of the CST. Under Ghana’s revenue laws, only the Ghana Revenue Authority (GRA) has been clothed with the power to issue such directives. It is on this note that we call on President Akufo Addo to consider the hardship on the taxpayer and immediately withdraw the increment in the CST.
We are therefore also calling on the Telecommunications Companies to disregard the Minister’s unlawful
directive.
READ-
Wait a minute!
Is your telecom data running out with the speed of light?
Do not forget Government increased the Communication Service Tax (CST) by a whopping 50% few months ago. This increase is new and additional to your expenditure. That is, largely, the answer.
The government wanted to hide the direct impact of the tax, so, they bullied the Telcos into accepting indirect deduction of the tax.
However, the overall effect of the cost on the already overburdened consumer is the same (Direct or indirect tax deductions).
It is appropriate to direct your anger at the Telcos for accepting to obfuscate the implementation of the 50% increase in CST.
It is also acceptable to protest the inherent challenges with their pricing regime.
But do not forget the raison d’être. That is, the Government of Nana Akufo-Addo who has inflicted this economic pain on you by increasing CST by a whopping 50%.
This 50% CST increase coincided with fuel price increases, in addition to increases in water and electricity tariffs.
As consumers, let’s hold Telcos accountable.
Furthermore, let’s hold our elected Government accountable FOR VISITING THIS ECONOMIC PAIN ON GHANAIANS because we are citizens not spectators.
By: Efo Korsi Senyo / awakenewsroom.com