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07.08.2019 Business & Finance

Ghana Chamber Of Young Entrepreneurs (GCYE) To Meet Government Communications Tax

By Justice Offei Jr.
Ghana Chamber Of Young Entrepreneurs (GCYE) To Meet Government Communications Tax
AUG 7, 2019 BUSINESS & FINANCE

The Ghana Chamber of young Entrepreneurs (GCYE) has said it is open to further discussions with the government over the imposition of taxes on consumers especially its members. This resolution was disclosed by Dr.Sherif Ghali, the CEO, GCYE, and his executives.

This follows the increase in the communication service tax (CST) to 9% according to the Finance Minister at the just 2019 Mid-year Budget review; the Government proposes to increase the communication service tax (CST) to nine percent to develop the foundation for the creation of a viable technology ecosystem in the country.

The Communication Service Tax (CST) was introduced in 2008 at an ad valorem rate of six percent. The tax is levied on charges payable by consumers for the use of communication services. The communication service tax ACT 2008 (Act 754) stipulates that at least 20% of the revenue generated from the tax shall be used to finance the youth employment programme.

Per our observation, this is the second time telecos tariff has been increased in just less than ten months as a result of government fiscal management. In November 2018, the then Mid-year budget review saw the separation of the 5 percent GETFund and NHIL levies from the VAT. This led to telecos increasing their tariffs effective November 1, 2018, transferring the cost to consumers.

About more than 90% of young entrepreneurs in Ghana depends on the services of the telcos in running their businesses and with the already operational burden on these young entrepreneurs such as annual business operating permits charged by municipalities, high cost of office rent, high cost of fuel, high lending rate among many other related challenges confronting young entrepreneurs, the Ghana Chamber of Young Entrepreneurs (GCYE) is calling on the government and the ministry of communication to reconsider this increment.

GCYE was established under the NYA with the primary aim of advocating and serving as the mouthpiece of young entrepreneurs, providing information on the funding source, facilitate access to credit and provide business support services to its members.

It is an associate member of the Private Enterprise Federation and the Commonwealth Alliance of Young Entrepreneurs and African Young Entrepreneurs with over 1,000 registered young entrepreneurs across the regions of Ghana.

GCYE believes that if nothing is done about this CST increment, many young entrepreneurs will face lots of challenges in their business since most will not able to bear its consequent burden.

Justice Offei Jr.

PRO & International Relations Dir.

Ghana Chamber of Young Entrepreneurs (GCYE)

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