As was exclusively reported earlier by nsemwoha.com, the upfront deduction of the recently increased 9% CST from subscriber’s recharge didn’t sit down well with government.
READ ALSO Government Orders Telcos to Reverse Direct Deduction of 9% CST
This led to the government trying to diplomatically get the CSTs to reverse it or charge the tax indirectly which government laments the Network operators refused to do.
Also the government expected that the Mobile networks would absorb the 9% CST as when it was 6% or just pass on the 3% increment to subscribers indirectly, but the profit hungry network operators used the opportunity to pass all 9% to subscribers to boost their profit margins.
In a show of power, the communications ministry has issued directives to the Mobile network operators which they must implement with immediate effect as part of new quality rules.
The directives are:
1. CST should be treated the same way VAT, NHIL, GETFUND levy and all other taxes and levies imposed on entities doing business in Ghana are treated. This extraordinary upfront deduction of CST and notification of same to subscribers must stop with immediate effect.
2. All unused data and voice bundles purchased by subscribers do not expire and must be rolled over with the next recharge
3. MNOS will be subjected to strict compliance with exiting Quality of Service (QoS) standards