Ghana: Communications Service Tax Act, 2008 (Act 754) entered into force

On 28 March 2008, Communications Service Tax Act, 2008 (Act 754) entered into force. The Act imposes a 6% tax on charges payable by consumers for the use of communication services provided by Class 1 licence holders under the National Communications Regulations 2003. The tax is collected by the Value Added Tax Service and paid into the Consolidated Fund, with at least 20% of the revenue allocated to the national youth employment programme. Service providers are required to submit monthly tax returns and pay the tax by the last working day of the following month, with penalties for late submission amounting to GHS 2'000 and an additional GHS 500 for each day the return remains unsubmitted. The Act also outlines provisions for the recovery of unpaid taxes, interest on overdue amounts, and enforcement measures, including distress and court orders. Additionally, it establishes a framework for objections, appeals, and regulatory oversight by the Minister of Finance and the Commissioner of Value Added Tax.