Minister defends directive to stop upfront deduction of CST

The Communications Minister is standing by her directive to Mobile Network Operators to stop upfront deductions of the Communications Service Tax (CST)

Ursula Owusu-Ekuful, in a response to opposition MP, Cassiel Ato Forson, rejected claims that her directive is unlawful.

The Minister directed the network operators through the National Communications Authority (NCA) to treat the CST as how the Valued Added Tax (VAT), GETFund and others are done.

But Ejumako-Enyan-Esiam MP, Mr. Forson argued that the body responsible for the administration of tax revenues is the Ghana Revenue Authority.

Image result for ato forson ursula owusu cst

Mr. Forson, who is the Minority spokesperson on Finance, added that the CST does not apply the principles of VAT.

The Minister’s directive, therefore, is “illegal,” he said.

But in a response, the Minister said she is not bound by the MP’s reading of the law.

She said the Electronic Communications Act which gives the legal basis for the network operators to work, also gives the Communications Minister the power to issue policy directions to the NCA in management of the sector.

Read her reply below