Government increases conversation tax to 9%

General News of Monday, July 29, 2019

Source: clbadfmonline.com

2019-07-29

The government has increased the tax on communication services from 6% to 9%.

Finance Minister Ken Ofori-Atta announced the increase in the work of Parliament on Monday, July 29, 2019 when he presented the mid-year review of the budget revision.

Mr. Ofori-Atta told legislators that: "The tax on communication services (CST) was introduced in 2008 at an ad valorem rate of 6%. The tax is levied on royalties owed by consumers for the use of communication services.

"The government is proposing to increase the tax to 9% in order to lay the foundation for creating a viable technology ecosystem in the country.

"This will include, among other things, the establishment of systems for the identification and fight against cybercrime, the protection of users of information technologies and the fight against money laundering and the fight against money laundering. Other financial crimes. The increase will not be affected, however, the sharing ratio will be adjusted so that national youth employment programs continue to receive the same proportions as today. "

Ofori-Atta also announced the dismantling of the luxury vehicle tax introduced in 2018, saying the government had considered the unrest of the public and various organizations advocating the cancellation of the tax.

He told Parliament that "as a government, we are proposing to the House the withdrawal of the tax".

Ofori-Atta added that the government would continue to improve compliance, expand the tax network and explore other innovative sources to boost the country's revenue. .

Parliament pbaded the luxury vehicle tax to impose an annual tax on heavy duty vehicles starting Wednesday, August 1, 2018.

The tax was supposed to apply to vehicles with a cylinder capacity of two thousand nine hundred and fifty (2950) centimeters and over.

The tax amounted to 1,000 GHS for vehicles with a displacement of 2950cc – 3549cc, 1500 GHS for vehicles of 3550cc – 4049cc and 2000 GHS for vehicles over 4049cc.