Finance Minister Ken Ofori-Atta has revealed that the government will reduce the communication service tax popularly referred to as ‘talk tax’ from nine percent to five percent over the next six months as part of measures to cushion the impact of the pandemic on consumers.
The communication service tax was only last year increased to nine percent as the government sought to raise its dwindling revenues.
The increase immediately led to a rise in telecommunication charges ie voice and data much to the disappointment of consumers.
But the Minister’s revelation would come as a relief to consumers especially at a time many had to work from home as a result of the pandemic — needing to rely more on telecommunications than ever.
In 2018, talk tax fetched the government a total of GH¢420 million, representing a 27.7 percent increase from the estimated ¢304 million accrued in 2017.
The amount was 4.56 percent more than the projected ¢401.8 million in the 2018 mid-year budget.