No Matter How Ursula Tries To Decorate CST, It was Passed By Parliament And Must Be Enforced

Ursula-Owusu-Ekuful.jpg

Since the telecommunication companies started the implementation of the proposed Communication Service Tax (CST) increment, which was passed by parliament, the minister of Communications, Ursula Owusu Ekuful, has become jittery and throwing tantrums.

CST, was first announced by the minister of finance, Ken Ofori-Atta, during the presentation of the 2019 Mid-year Budget Review.

Ken Ofori-Atta, told Parliament that the levy was increased in a bid to build a viable technology ecosystem in Ghana.

The Communication Service Tax (CST) was previously set for 6 percent, however, it was raised to 9 percent.

Reactions have trailed the coming into effect of the 9percent increment, with many Ghanaians, saying that, the government, did not take into cognisance the difficult times people find themselves.

Increasing any tax is wrong on right timing and inconsistent with current economic reality.

The increment is tantamount to taking back what was given with the right hand through the increase in the National Minimum Wage, which is expected to take effect next year, with the left hand, through increase in CST.

The Communications Minister, has been on the warpath with telecommunications companies, asking them to use the back end approach, instead of the front end approach in deducting the 9 percent.

CST, by definition is a usage tax, the law however defines usage as airtime recharge amount and tax must be accounted for at the time of purchase.

In the opinion of this newspaper, it makes no difference how the deduction is done, whether through the front end or back end, it still comes to the 9percent.

Ursulu Owusu, can’t issue a directive on the implementation of tax, when she has no locus, how a tax is implemented is within the purview of the Commissioner General of the Ghana Revenue Authourity (GRA).

 

 

 

 

Share this:

Share News

submit to reddit