CST Increment: The government vrs. the people

Finance Minister, Ken Ofori-Atta, announced the increment of Communication Service Tax (CST) in parliament on Monday, 29 July 2019 when he presented the mid-year budget review statement.

Mr Ofori-Atta told the lawmakers that: “The Communication Service Tax (CST) was introduced in 2008 at an ad valorem rate of six per cent. The tax is levied on charges payable by consumers for the use of communication services.

“Government proposes to increase the tax to nine per cent to develop the foundation for the creation of a viable technology ecosystem in the country.”

On Tuesday October 1, 2019, the Communication Service Tax (CST) increment took effect along with other taxes - electricity and water tariffs.

Ghanaians on social media, however, have expressed their opposition to the increment in the CST and other taxes with strong criticism of the Akufo-Addo led government.

According to them, Nana Akufo-Addo and his administration should have put taxes on alcohol and cigarette instead, as airtime/credit is widely patronized and fundamentally necessary, compared to alcohol and cigarettes.



The increment in the CST and other tariffs is in sharp contrast to the NPP’s 2016 manifesto, which promised to reduce taxes “… to provide immediate relief to households and industry”.

The Vice President, Dr. Mahamadu Bawumia, in 2015 also criticized the manner in which the then NDC government was running the economy.

Dr. Bawumia, then running mate for the NPP, promised that if the party won the 2016 general elections, they would make the economy better, but many are of the view that Ghana’s economy today, does not reflect his tweet.



Some people reacted to his tweet.















Others have also found humour in the matter, blaming the devil for the current situation.



GhanaWeb spoke to some Ghanaians when the announcement of the new CST was made, and they expressed their disappointment in the government.

Watch a playback of the video below: