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MINISTRY OF COMMUNICATIONS P. 0. BOX M.38 ACCRA Incase of reply the number and date of this letter should be quoted Tel No: #233-(0)30-266-6465 Fax No! +233-(0)30-266-7114 Digital Address: GA 079-0539 Republic of Ghana My Ref, No:SCA [it 122]9,34 [om Your Ref. No: 9 October, 2019 THE DIRECTOR GENERAL NATIONAL COMMUNICATIONS AUTHORITY ACCRA ATTN: Mr. Joe Anokye Dear Sir, DIRECTIVES ON COMMUNICATION SERVICE TAX (CST) IMPLEMENTATION We must emphasise the fact that CST was increased from the existing rate of 6% to 9% effective 4t September, 2019. The tax has been in existence since 2008 and was increased to provide revenue for cyber security initiatives to protect the digital infrastructure and policies being used by both the public and private sector. At the series of meetings held between the Ministry of Communications, Mobile Network Operators (MNOs) and the NCA on 7" and 8" October, 2019, we were informed that prior to 4” Septembet 3019, MNOs had not been passing on the CST to subscribers but had decided to take advantage of the 3% increase to pass on the entire tax to subscribers. This has effectively increased their profit margin at the expense of subscribers. All efforts to get them to revert to the September 2019 situation has failed as they literally exac their pound of flesh from their consumers. To minimize the negative impact of the current mode of deduction of the CST, the Ministry Communications hereby directs the immediate implementation of the following measure: 1. CST should be treated the same way VAT,NHIL, GETFUND levy and all other taxes and levie imposed on entities doing business in Ghana are treated. This extraordinary upfron deduction of CST and notification of same to subscribers must stop with immediate effect. 2. All unused data and voice bundles purchased by subscribers do not expire and must b rolled over with the next recharge. 3, MNOs will be subjected to strict compliance with exiting Quality of Service (QoS) standarc to ensure value for the subscribers’ money in accordance with their licence obligations. Kindly ensure that these measures take immediate effect. Tam counting on your usual prompt cooperation in this regard. Yours sincerely, 4 MRS. URSULA OWUSU-EKUFUL (MP) MINISTER Distribution list Hon. George Nenyi Andah Deputy Minister for Communications Hon. Vincent Sowah- Odotei Deputy Minister for Communications The CEO MIN The CEO Vodafone The CEO AirteiTigo The CEO Glo The Commissioner General Ghana Revenue Authority (GRA)