Report telcos that still deduct CST upfront – Gov’t

The government is urging the public to report telcos that still charge them the 9% Communication Service Tax (CST).

A Deputy Minister for Communications, George Andah said all teclos have been directed to immediately stop the upfront deductions made on mobile credit top-ups by service users.

Mr. Andah explained that the CST which was increased from 6% to 9% earlier this year, must be implemented in the same manner as it is with the health insurance levy and the value added tax.

He warned that service providers who disregard the directive run the risk of facing sanctions including losing their licenses.

The announcement of the increment in CST, also known as Talk Tax saw telcos announcing subsequently that “for every ¢1 of recharge purchased, a 9% CST fee will be charged leaving ¢0.93 for the purchase of products and services.

Many mobile users were sent text messages from their operators about the development, generating disquiet among some users.

But according to the government, the increment is to allow it get enough funds to put in place systems to identify and combat cyber crime, protect users of information technology and combat money laundering and other financial crimes.



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