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Government to reduce Communication Service Tax from 9% to 5% – Ofori Atta

Government has hinted that it is going to reduce the Communication Service Tax from 9% as it stands currently to 5% in the coming days. 

This revelation was made during the presentation of the Mid-Year budget review by the Finance Minister in parliament on Thursday, 23rd July 2020.

“In the short term, we will reduce the CST from 9% to 5% to reduce the cost of communication services to the consumer as more and more people work remotely and utilize online services. We will count on the Telcos to match this reduction in the CST by reducing their tariffs. This is important for our youth, entrepreneurs and the burgeoning FINTEC industry” he said.

Meanwhile, the Minister also noted that “As such going forward, the government will work with the Telcos and ECG to rollout fibre across the country on the back of the electricity distribution network so every citizen nationwide will have access to high-speed broadband”.

He also noted that the decision was made due to the impact of the COVID-19 on businesses and individuals who mainly depend on internet services to work hence the need to reduce the Communication Service Tax for the Ghanaian people.

“Mr. Speaker, the future is about digitalization. Data is now becoming as essential as water and electricity, especially for our youth and businesses. The COVID-19 pandemic has reaffirmed this, especially as more people work remotely and also access education and health services. This caring Government has worked diligently to digitalise the economy over the last three and a half years. We need to further speed up the digitalisation effort where every citizen nationwide has access to the internet and other digital services” he noted.

By Amos Ekow Coffie  |  talksafrica.com

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