Government of Ghana bags GHS247.6m from talk tax

Posted: June 7, 2011 in Economic Reporting
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The Government of Ghana has realized a total of GH 247,605,000 from the Communication Service Tax since its inception, Minister for Communications, Haruna Iddrisu told Parliament today.In 2009, money accrued from the Communication Service Tax, popularly known in Ghanaian circles as “Talk tax” was GH¢ 87,400.00. In 2010, the Government recorded an amount of GH¢ 128,005,000, over 45 percent increase over the previous year’s figure.

The first quarter of 2011 also recorded an amount of GH¢32,200.000. Mr. Iddrisu noted that the amount realized for the first quarter of 2011 indicates that more money would be realized from the “talk tax” by the close of the year ending December 31, 2011 bearing any foreseeable circumstances.

The Communications Service Tax Act, 2008 imposed a tax to be known as the communication service tax. It was to be levied on charges payable by consumers for the use of communication service. The tax is levied on all communications service usage charged by communications service providers with Class 1 licenses as provided in the National Communications Regulations 2003 (L.I.1719).

The tax is collected by the Value Added Tax Service and paid into Consolidated Fund for national development.

Money accrued from the communication service tax is used to fund various developmental projects across the country. Currently, 60 percent of the communication service tax is used to fund the National Youth Employment Program.

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