Ghana delays plans to raise CST with 6%

9 Jul 2013

Ghana’s government has reportedly dropped plans to pass the Communications Service Tax Bill, which aims to impose an additional 6% interconnection fee on incoming international calls after objections from the country’s network operators represented by the Ghana Chamber of Telecommunications, Cellular News reports.

As previously reported by TeleGeography’s CommsUpdate, Ghanaian mobile operators currently pay 15% value added tax (VAT) and National Health Insurance Levy (NHIL) on international calls, and the hike in the CST, also known as ‘Talk Tax’, would have resulted in operators passing the new fee on to customers. Additionally, the recent draft bill proposed the re-introduction of 20% import taxes on mobile handsets to protect local manufactures of mobile phones, projected to raise an estimated GHS49.8 million (USD24.14 million) for the treasury. The Ghana Chamber of Telecommunications said in a statement that it was dissatisfied with the CST amendment bill, as it would pose difficulties to operators and might hamper investment required for the expansion of infrastructure.