Talk Tax Bags GH�250m

The Communication Service Tax (CST), popularly known as �Talk Tax,� has generated more revenue for government since its inception in 2008. The Talk Tax, which is a levy imposed on calls made by customers per second, has bagged GH�250 million for the country since it was implemented somewhere in June 2008. During the first quarter of this year, it generated GH�32 million for the country. In 2009, a total of GH�87,400,000 was collected while an amount of GH�128,005,000 was realized in 2010. Haruna Iddrisu, Minister of Communications made this known in Parliament when he answered a question relating to the communications industry in Ghana. Catherine Abelema Afeku, the Member of Parliament (MP) for Evalue-Gwira, posed a question to the minister as to how much revenue the CST had generated over the years to facilitate government�s development agenda The talk tax forms part of efforts by the government to widen the tax net in order to increase revenue. It is a special levy imposed on all communications services and the usage tax is charged by communication service providers who are licensed by the National Communications Authority (NCA) under the National Communications regulations 2003. The Domestic Tax Unit of the Ghana Revenue Authority (GRA) is solely responsible for collecting the Talk Tax. The Minister of Communications noted that the Value Added Tax Service collects the tax and pay into consolidated Fund for national development. Parliament on December 5, 2007 unanimously passed the bill in after a heated augment as the imposition of the levy on airtime was described as an inhibition to the freedom of speech.