Communication Service Tax up by 50%

Persons who use communication related services should brace up to pay 50% more on these services.

This is because government has increased the Communication Service Tax from six percent to nine percent, Finance Minister Ken Ofori-Atta announced on Monday.

This represents a 50 percent increment. The tax was introduced in 2008 at an ad valorem rate of six percent.

“Government proposes to increase the tax to nine percent to develop the foundation for the creation of a viable technology ecosystem in the country,” the minister said when he presented the mid-year fiscal policy review of the 2019 budget statement and economic policy and supplementary estimates of the government of Ghana for the 2019 financial year.

“This will comprise amongst others putting in systems to identify and combat cybercrime, protect users of information technology and combat money laundering and other financial crimes,” he explained.

Per the law, at least 20% of the revenue generated from the tax should be used to finance the National Youth Employment programme.

“The increase will not be earmarked, however, the sharing ratio will be adjusted in such a manner that the national youth employment programmes continue to receive the same proportions as they are currently receiving.”

The increment in the Communication Service Tax comes at a time government is withdrawing levy on luxury vehicles.

Read: Govt withdraws tax on luxury vehicles

Meanwhile, government is proposing an upward adjustment in the Road Fund Levy, the Energy Debt Recovery Levy; and the Price Stabilisation and Recovery Levy to bring the ratios close to 21 percent to help bridge the financing requirements.

Source: 3news.com | Ghana

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