Ursula Owusu-Ekuful Minister for Communications has replied Ejumako-Enyan-Esiam MP Cassiel Ato Forson on the Communications Service Tax (CST)debate.
Mrs. Owusu-Ekuful was called by Mr. Forson for her directive to Mobile Network Operators to stop the upfront deduction of the Communications Service Tax (CST).
Mr. Forson said the Minister's directive was illegal. The row follows the government’s increasing of the CST from six percent to nine percent.
The telcos in Ghana also adopted the six percent but later increases theirs to nine percent to consumers by an upfront deduction from airtime purchases.
Ursula Owusu-Ekuful then directed them to stop this and rather treat the CST as the Valued Added Tax (VAT) or any other tax.
READ ALSO: Telecommunication companies begin charging 9% Communication Service Tax today
Mr. Forson who is the Minority’s spokesperson on Finance does not agree, explaining that only the Ghana Revenue Authority is empowered to give orders on tax administration.
But the Minister disagrees. According to her, the Electronic Communications Act which gives the legal basis for mobile networks to operate in the country also gives her the power to issue policy directives to the regulator, the National Communications Authority.
Mrs. Owusu-Ekuful says Mr. Forson's reading of the law is his opinion, adding that if she wants lessons in good morals, “I certainly won’t go to the brothel for it.â€
Meanwhile, the network operators have asked for at least a month to amend their systems to stop the upfront deductions.
READ URSULA'S REPLY
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