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Increased ‘Talk Tax’, Utility Tariffs Take Effect Today

By: KALD | Voltaonlinegh.com |

Two major consumer tax and tariffs are set to go up effective today, October 1, 2019 following their upward reviews.

The recently increased Communication Service Tax  (CST) from 6 to 9 per cent, and the about 8 per cent total increment  in both electricity and water tariffs,  would see  consumers pay extra more for these services, which are essential to every day life.

According to the  Ghana Chamber of Telecommunications, the CST which was reviewed upwards in the 2019 mid year budget, would be applied to every recharge purchase.

With Communication Service Tax now increased from 6%,  9%  CST will be applied to any recharge purchase.

So for every GH¢1 of recharge purchased, a 9% CST fee of GHS 0.07 will be charged leaving GHS0.93 (not GHS0.91)  for purchase of products and services,” the Chamber explained in a Facebook post on how the tax will be charged by the telecom service providers.

This, means the telecom operators would  deduct  and pay to the Ghana Revenue Authority, 7 pessewas, representing the 9 per cent CST on every GHs1 of airtime bought, leaving consumers with GHs 0.93 to buy products and services such as data and call bundles.

Prior to today’s implementation, three of the telecom operators,  MTN, Vodafone and Airtel Tigo have  in the past weeks sent SMS communication to their subscribers regarding the coming into effect of the revised CST from October 1, 2019.

Utility Tariffs

Similarly, consumers would from today also pay 5.94 and 2.22 per cents more respectively  for  electricity and water, following a recent  review of tariffs by the Public Utility Regulatory Commission (PURC).

This is a second tariff increment in three months, which according to a statement from the utility regular was done using  the Automatic Adjustment Formula  (AAF), taking into consideration various variables including the exchange and inflation rates.

Source: www.voltaonlinegh.com

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