Ghana Telecoms Chamber has announced a possible spike in Communication Service Tax (CST) as the approval of the Amendment Bill is expected.
A six per cent charge, otherwise known as Talk Tax and translating to six cents per minute, will be imposed on international calls if the government establishes the impending law.
“If parliament passes the CST Amendment Bill, it would lead to a substantial increase in the cost of telecommunications services, if operators pass on the cost to consumers,” a chamber statement said.
Mobile network operators currently pay 15 per cent value added tax (VAT) and National Health Insurance Levy (NHIL) on international calls.
Large investments required for expansion of infrastructure will pose difficulties to operators if the bill is activated.
Furthermore a five per cent Stabilisation Levy will be raised on telecommunications services.
This will increase the cost for a sector known for its below zero inflation over a period of three years in the Ghanaian economy, Ghana News Agency reported.
CST proposals aim to raise governmental funds and is viewed as part of Consumption Tax, first introduced in 2008.
