The Communications Ministry has directed telecommunication companies in the country to immediately stop the upfront deduction of Communications Service Tax, CST.
A letter from the ministry to the National Communication Authority said the implementation of the tax should be treated like the National health Insurance levy and the GETFUND.
The letter added the direct deduction of the tax increases the profit margins of telecom firms in the country.
 As a way to minimize the negative impact of the deduction of the CST, the Communications Ministry also asked the Telecos to roll over all unused data and voice bundles purchased by subsribers.
READ ALSO : GRA directs telcos to start charging revised CST
The Chairman of the Finance committee of Parliament, Dr. Mark Assibey-Yeboah earlier accused telecommunications companies in the country of bad faith regarding the implementation of the Communications Service Tax, (CST).
The tax which was reviewed upward from 6 to 9 percent now sees credits of customers deducted at the point of recharge.
The move has resulted in complaints from a wide section of the public against the increment by government.
Speaking to media after the article 4 review meeting with the International Monetary Fund, Dr. Assibey-Yeboah said the move by the telcos is to make government unpopular.
“Somebody is just being disingenious because it was 6 percent and now it is 9 percent…previously we didn’t state it explicitly that if you bought credits of 10 cedis 6 percent is not for you..as to why they didn’t state it I cannot explain.
READ ALSO : Telecom Chamber to meet Ministry of Communications over 50% increment of CST
“But now somebody thinks that to make government unpopular I have to state the full extent of the CST. So now people are complaining. You were still getting 9 cedis 40 pesewas except that it was not being stated,†Dr. Assibey-Yeboah told Starr News’ Ibrahim Alhassan.
Dr. Assibey-Yeboah, however, disclosed government will not introduce or increase taxes in the 2020 budget.
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