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Cellphone companies disappointed with tax increase
Published: Thursday | October 1, 2009
( L - R ) Houston, Linehan
Telecommunications service providers reacted with disappointment yesterday to Finance Minister Audley Shaw's late-night announcement that there will be a five per cent increase in the general consumption tax (GCT) on cellular telephone services.
In a statement issued yesterday, Geoff Houston, country manager for LIME in Jamaica, stated that while the company was sympa-thetic to helping the nation through a difficult time, it also had to balance the needs and challenges of its customers.
"While we understand the rationale for the increase, we feel it may be too much for one sector to shoulder so much of the burden," Houston said. "Of course, we have to collect the additional taxes on behalf of the Government, but we hope our lower prices will more than offset the impact, particularly when compared to the competition."
Shaw announced Tuesday night, while opening the debate on the First Supplementary Estimates in the House of Representatives, that the tax on telephone cards, telephone calls and instruments would increase from 20 per cent to 25 per cent.
Changes to be implemented
Mark Linehan, CEO of Digicel Jamaica, said though his firm was disappointed that GCT on phone calls and instruments would be increased, it would implement the changes as prescribed by the Government.
"We would like to assure our customers that we will continue to drive value into the market, ensuring our two million customers benefit from being with Jamaica's bigger, better network," he added.
The increase in the taxes will take effect today.
Meanwhile, in its own release last night, Claro said today's deadline would not facilitate effective implementation as the company needed an opportunity to advise its customers of the changes as well as amend its billing system.
Prophet Don1 predic dat./
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