Minister of Finance, Ken Ofori Atta has announced that there will be a 50% increment in Communication Service Tax.

Addressing parliament Monday, July 29 during the 2019 mid-year review budget, Mr Ofori Atta indicated that the government intends to increase the tax to nine per cent.

The tax is levied on charges payable by consumers for the use of communication services.

The increment, the minister explained, is to develop the foundation for the creation of a viable technology ecosystem in the country, but said the increment will be earmarked in a manner that will ensure the national youth employment programme receives exactly what it currently receives.

“Government proposes to increase the tax to nine percent to develop the foundation for the creation of a viable technology ecosystem in the country,” the minister said when he presented the mid-year fiscal policy review of the 2019 budget statement and economic policy and supplementary estimates of the government of Ghana for the 2019 financial year.

“This will comprise amongst others putting in systems to identify and combat cybercrime, protect users of information technology and combat money laundering and other financial crimes,” he explained.

Per the law, at least 20% of the revenue generated from the tax should be used to finance the National Youth Employment programme.

“The increase will not be earmarked, however, the sharing ratio will be adjusted in such a manner that the national youth employment programmes continue to receive the same proportions as they are currently receiving.”

Charge for communications service usage means the amount chargeable by a communication service provider for communication service usage, other than the valued added tax, national health insurance levy

The increment in the Communication Service Tax comes at a time government is withdrawing levy on luxury vehicles.