Office Address: Office of Parliament Parliament House Accra - Ghana Cell: +233 - 203103254 CASSIEL ATO FORSON (MP) AJUMAKO ENYAN ESSIAM CONSTITUENCY RANKING MEMBER / FINANCE COMMITTEE iyrer.Mecle)\2e19..— vourrer bae:.J4)!" \14 Constituency Address National Democratic Congress (NDC) P.O. Box 50, Ajumako Besease Email: www.Atoforson.com info@Atoforson.com Mrs Ursula Owusu-Ekufal Hon. Minister of Communications Ministry of Communications P.O. Box M38 ‘Acera, Ghana Dear Hon. Minister, Ref: Directives on Communication Service Tax (CST) Implementation Reference is made to a Directives on Communication Service Tax (CST) Implementation issued by the Hon. Minister for Communications, Ref. No. SCR/HB.128/239/02, dated 9 October 2019. The Directives instruct that the Communication Service Tax (CST) be treated the same way VAT. NHIL, GETFUND levy and all other taxes and levies imposed on entities doing business in Ghana are treated. I would like to point out that: (i) under The Revenue Administration Act 2009 (Act 791), the administration and management of tax revenues reside in the Ghana Revenue Authority, and (ii) the CST Act 2019 does not apply the principles of the Value Added Tax (VAT) Act 2013 (Act 870) Form the two Acts, The Minister for Communications does not have the powers to issue an administrative order on how a tax policy should be implemented: and secondly, the CST cannot be treated in the same way VAT is treated. The issuance of the directive is, therefore, an illegal act and should be withdrawn withimmediate effect. Ifthe govemment wishes to treat the CST as VAT, the Ministry of Finance should be encouraged to present a CST Amendment Bill to parliament for the necessary action to be taken. It is unconscionable for the Goverment to increase the CST but insist that telecommunications companies hide the deductions from the consumers. If the government thinks the policy is making it unpopular, it should come to parliament to repeal the Act. Kindly accept, Honourable Minister, the assurances of my highest consideration. Ayo * Cassiel Ato Forson, MP Ranking Member Finance Committee Parliament of Ghana Ce: Hon. George Neny Andah Deputy Minister for Communications Hon. Vincent Sowah Odotei Deputy Minister for Communications The CEO MIN The CEO Vodafone Law Offices of Ayine and Felli 21