Government has announced a reduction in the Communication Service Tax (CST) from nine per cent to five per cent.
The move is to reduce the cost of communication services to the consumer as more and more people work remotely and utilise online services amid the COVID-19 pandemic.
“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.
“The COVID-19 pandemic has reaffirmed this, especially as more people work remotely and also access education and health services,” he said.
Finance Minister, Ken Ofori-Atta, who said this while presenting the 2020 Mid-Year Budget Review on the Floor of Parliament stressed data is now becoming as essential as water and electricity, especially for the youth and businesses.
“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. In the short term, we will reduce the CST from 9% to 5%,” he noted.
Meanwhile, he urged the Telcos to match the reduction in the CST by reducing their tariffs.
This follows an increment in CST charges from 6% to 9% effective October 1, 2019, and was applied by the Telcos to any recharge purchase by subscribers.
