Communications Service Tax rakes in GH¢760m in March

The Communications Service Tax, known as ‘Talk Tax’ has raked in an amount of GH¢760 million as at March 2009.

Madam Afeku, Deputy Ranking Member of Communications said this in Kumasi.

The Communications Service Tax (CST) is a tax levied on charges for the use of communications service that are provided by communications operators. It came into force in June 2008.

The tax is paid by consumers to communication service providers and attracts charges on internet, broadcasting, cable, maritime and satellite services as well as other services provided through transmissions or signals to produce sounds or visual images.

CST is imposed under Section1 of the Communications Service Tax Act 2008, (Act 754). It is paid by consumers to the communications service providers, who in turn pay all CST collected to the VAT Service on a monthly basis. The VAT Service is required under the law to pay the CST collected into the Consolidated Fund.

The VAT service has set for itself a target to collect GH¢855.35 million this year.

By Emmanuel K. Dogbevi