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in Vaultz Business

Telcos slash tariffs by 4 percent

Maynard Championby Maynard Champion
September 14, 2020
Reading Time: 2 mins read
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network operators

Mobile network operators will reduce their tariffs by four per cent effective September 15.

This is to reflect the five per cent reduction in the Communication Service Tax.

The Chief Executive Officer of the Chamber of Telecommunications, Dr. Ing. Edem Ashigbey in a press release said “the tariff adjustment program means when our customers pay the same price they would enjoy more, which is in line with the Government’s measures in alleviating cost burden on citizens in the wake of the global pandemic.”

Acting in accordance with the passage of the Communication Services Tax (amendment) Act, 2020 (Act 1025), he indicated that, “the modifications will represent 5% CST charge and would be applied through a tariff adjustment on the products and services of its members”.

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 In a statement sighted by Vaultz News, engagements with the Finance Ministry and other stakeholders and agencies according to Mr. Ashigbey, has expedited “the smooth reconfiguration of service providers’ systems to accommodate the commercial and technical requirements”.

He further noted that customers will be duly notified  by network operators “on the completion of the modification exercise and provide further transparency on the adjusted tariffs of their products and services while offering other relevant information post usage of these services”.

Mr. Ashigbey assured customers on the Chamber’s commitment to the “mobile industry” and their resolve to remain “committed to the socio-economic development of Ghana”.

Additionally, he extended the Chamber’s dedication to remain resolute in its “sole object and focus in driving and supporting Ghana’s digitization agenda”.

Earlier, Kenneth Ashigbey, had commended government on the implementation of the reduced Communication Service Tax, CST, to improve performance.

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Speaking in an interview, he iterated that businesses are positioned to take advantage on the tax reduction to become more efficient.

“Now all of us are moving digital and all of that, the cost of doing business as far as connectivity is concerned will come down and the fact that government has reduced the tax burden on all of us as consumers is something that is good and we are only hoping that the people will use it to be able to turn their businesses around and then it will help in the recovery process for all of us.

 “You know how hard COVID has hit all businesses, now that that cost component in terms of the connectivity will be lower we hope that businesses will use it to turn round their wheels of productivity so that we can be able to recover from the effects of the pandemic”.

Government in its Mid-year budget review announced a reduction in the tax from 9% to 5% as part of measures to cushion consumers from the economic impact of the COVID-19 pandemic.

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Tags: Finance MinistryNetwork operatorstariff reductiontelcos
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