Call Tax up, Recharge Cards Lose Value October 1st

Government will go ahead with its decision to increase call tax, from Tuesday 1st October 2019. Users of mobile telecommunication services will pay more for voice and data. The tax is levied on charges payable by consumers for the use of communication services.

The call tax will be 9% of every recharge card purchased. This means that every recharge card a consumer buys will give the customer less value in return as government earns more on every second of call or bundle of data you use.

Effect of New Call Tax on Recharge Cards

This is how much you will get when you recharge

1gh card = 0.91p

2gh card = 1.82p

5gh card = 4.55p

10gh card = 9.10p

20gh card = 18.20p

50gh card = 45.5p

The reality is that, it will also affect your internet data bundles as well. In practical terms, your credit for making calls will reduce just like your data for the same amount you purchase.

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The government of Ghana introduced the Communication Service Tax (CST) in 2008 at an ad valorem rate of six percent.

Telcos and the New Call Tax Rate

According to Mr. Ken Ashigbey, the CEO of Telcos, they are already paying a whopping 40% of their revenue to the government as taxes and this increase in call tax will only further burden them.

When government informed the general public of the upward adjustment in the call Tax from 6% to 9%, The Ghana Chamber of Telecommunications hinted of its readiness to meet the government of the proposed increase to find alternative ways to generate revenue in the sector.

However, from all indications, government will go-ahead to shoot the call tax up by some 3% which will bring the tax to 9% come October 1st.

Source: |Newsghana24|