The Parliament of Ghana today July 9, 2013, approved the Communications Service Tax (Amendment) 2013.

The interconnectivity tax is expected to be paid by the telecommunications companies. It is levied on calls between networks. Ghana has six telecoms operators ? they are MTN, Vodafone, Tigo, Expresso, Airtel and Glo.

The law, according to the government seeks to amend some provisions in the Communications Service Tax Act, 2008 (Act 754) to clarify the scope and coverage of the tax and include interconnection services within the tax base.

The Communications Service Act, 2008 (Act 754) which imposed a six per cent charge on communications service usage was an excise tax intended to raise additional revenue from communication services, provided by mobile operators to their customers.

The Bill was passed despite objections by service providers.

The Ghana Telecoms Chamber that opposed the bill warned that the cost of telecoms services could rise if the law was passed.

?If parliament passes the CST Amendment Bill it would lead to a substantial increase in the cost of telecommunications services, if operators pass on the cost to consumers,? the Chamber said in a statement July 3, 2013.

By Emmanuel K. Dogbevi/

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