TELCOS TO CEASE 9% CST UPFRONT DEDUCTIONS
Telecommunication Operators in the country will, from the 26th of November, 2019, cease the upfront deductions of 9% Communications Services Tax (CST), the telecoms chamber has announced.
The cessation follows GoG’s agreement with the telcos to apply the 9% CST as a price increase instead of as an upfront deduction on recharge.
Systems configuration to accommodate the commercial and technical requirements, according to the telecoms chamber will be completed on the 26th of November, 2019.
The 9% CST charges will now be applied through a tariff adjustment on the products and services of the telcos. The various telecommunication operators will notify their respective customers on the completion of the exercise and provide transparency on the adjusted tariffs of their products as well as offer information to subscribers post usage of these services, the release mentioned.
Government’s announcement of an increase in the CST and a subsequent decision by telcos to deduct the tax upfront raised a lot of eyebrows. Most customers described the approach as disingenuous, especially on the part of the telcos.