The Minister for Communications, Ursula Owusu has replied the Member of Parliament for Ejumako-Enyan-Esiam, Ato Forson saying he cannot issue her orders or instructions on how to do her work.
If you can recall, Mr. Ato Forson wrote to the Communications Minister saying her directive issued to the to Mobile Network Operators (MNOs) to halt the upfront deduction of the Communication Service Tax (CST) is illegal and wants the government to withdraw the directive.
The Communications Ministry has ordered MNOs to stop passing on the 9% Communication Service Tax (CST) to subscribers.
In a letter addressed to the National Communications Authority (NCA), the Communications Ministry stated that the CST should be treated the same way VAT, NHIL, GETFUND levy and all other taxes and levies imposed on entities doing business in Ghana are treated.
“At a series of meetings held between the Ministry of Communications, MNOs and the NCA on October 7 and 8, 2019, we were informed that prior to September 4, 2019, MNOs had not been passing on CST to subscribers but had decided to take advantage of the 3% increase to pass on the entire tax to subscribers. This has effectively increased their profit margin at the expense of subscribers,” the letter explained.
However, Mr Forson in a letter addressed to the Communication Minister said: “under the Revenue Administration Act 2009 (Act 791), the administration and management of tax revenues reside in the Ghana Revenue Authority and CST Act 2019 does not apply the principles of the Value Added Tax VAT).”
“From the two Acts, the Minister for Communications does not have the powers to issue an administrative order on how tax policy should be implemented; and secondly, the CST cannot be treated in the same way VAT is treated. The issuance of the directive is, therefore, an illegal act and should be withdrawn with immediate effect,” he added.
According to him, “If the government wishes to treat the CST as VAT, the Ministry of Finance should be encouraged to present a CST Amendment Bill to parliament for the necessary action to be taken.”
The Minister in her response to the MP however said, the Electronic Communications Act which provided the legal basis for the Mobile Network Operators to operate in the country equally “gives the Minister for Communications the right to issue policy directives to the regulator in the management of the sector”
By: Efo Korsi Senyo / awakenewsroom.com