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Tuesday, 25 July 2017

Internet prices to rise after VAT implementation

You’re set to pay more for your ADSL package now that service providers will themselves be required to pay the 14% value-added tax, according to a report from the Cabinet Information and Decision Support Center picked up by AMAY. Data packages across the board will cost more for the ISPs to provide starting in September when the VAT for telecom services will come into effect (the IDSC had initially said it would be applied in July). Internet service providers have failed to convince the ICT Ministry to give them another year without having to pay the VAT and have thus been pushing the National Telecommunications Regulatory Authority to give authorize a 15% increase in service prices to offset the impact of the VAT. The CIT ministry had previously said it believes ADSL providers could be allowed to raise prices by as much as 4% to offset the impact of the VAT.

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