..Our government likes Telekom’s data products redhot and costly

 

 

THOUSANDS of Our Telekom internet users have been slugged a 10 percent tax increase after the Government informed the telco giant that it is liable for paying goods and services tax (GST) on revenue it earns from data charges.

Customers using products such as facebook, messengers and so on would be affected. The new tax also applies to both prepaid and post-paid individual and corporate customers.

Unless it is exempt, the Government being the biggest customer would be hard hit by the new revenue-raising measure it has imposed on Our Telekom clients.

Despite the huge increase on charges, Our Telekom has failed to inform its clients of the new tax, which comes into effect this month.

Instead, the company which is almost wholly owned by the Solomon Islands National Provident (SINPF) merely informs its customers over the counter that it is passing on the new charge to clients.

Our Telekom Sales Counter said on the weekend that up to 10,000 clients would be affected by the new tax.

They said Our Telekom had no choice but to impose the new tax because it is a directive from the Inland Revenue Division of the Ministry of Finance and Treasury.

It is not clear whether a similar directive was issued to Our Telekom’s rival, Bemobile.

It is also not clear whether the new tax was part of a range of new revenue-raising measures included in the 2017 National Budget, which Finance Minister Snyder Rini brought down last December.

The new tax meant that individual using Our Telekom’s Redhot product which starts at $20 and up to $100 will now pay an additional $2 and $10 respectively.

Corporate customers will pay a much higher tax as it is based on the data packages they have acquired.