Ghana makes GH¢27.68 million from CST
The nation bagged GH¢27.68 million from the Communication Service Tax (CST) in the first five months of its operation. The amount thus represents the total revenue of CST collected from July 2008 to December 2008.
Anthony Ewereko Minlah, Commissioner of the Value Added Tax (VAT) Service, the revenue agency in charge of collecting the CST, told Joy FM, an Accra based radio station that though the money raised fell short of the target, the collection has been good.
He added that his outfit has put in place measures to improve its revenue earning for the nation.
In July 2008 when the CST began operations, the VAT Service collected a little above GH¢4 million while GH¢5.6 million was obtained in August the same year.
The CST charges six percent ad-valorem on communication service and related activities like internet usage, broadcasting and satellite.
It also attracts charges on internet, broadcasting, cable, maritime and satellite services as well as other services provided through transmissions
An Ad valorem tax such as sales or value added tax is based on the value of a product imposed at the time of transaction.
For mobile service providers, a specific exercise levy per minute- one pesewa charge per minute-of airtime usage is imposed on mobile phone subscribers.
At least 20 percent of the revenue accrued from the CST is used to fund the National Youth Employment Programme (NYEP).
The main objective of the tax was to boost revenue from the fast growing communication sector which now consists of five mobile service operators.
Zain Ghana is the latest to join the train which includes MTN, Tigo, Onetouch and Kasapa.
Source: Daily Guide