Chief Executive Officer of Vodafone Ghana has revealed that her company will from November 26 halt the upfront deduction of Communication Service Tax (CST) from airtime top-up.
Patricia Obo-Nai stated that customers will henceforth receive the exact amount of airtime they purchase, unlike how their top-up balance currently reflects a deduction of the CST.
“In the past when you recharge ¢1, I will take ¢0.70 pesewas and give it to government,” she said.
This comes after warnings from the communications ministry to punish Mobile Network Operators (MNOs) for defying recent directives on the Communications Services Tax (CST).
The implementation of the CST has been a controversial topic, as customers say they are being cheated by the telecommunication companies.
Communications Minister, Ursula Owusu-Ekuful, recently issued a statement directing telecommunication companies in Ghana to stop the upfront deduction of the 9% Communications Service Tax (CST).
This was in a bid to stop telecommunications companies from giving their customers less airtime than they purchased.
This means prices of data packages will be increased by telcos to accommodate the 9% tax customers are mandated to pay.
“When you see a price increase on any product, it will not be because of the telecoms wants to address inflation, or operational cost, it is just tax we are collecting,” the Vodafone CEO said.
She indicated that the decision was reached following a meeting with the Communications Ministry.