Five percent telecommunication tax comes into effect

CommunicationTax--The five percent telecommunication tax came into effect from yesterday. The call rate to India has also increased from Nu.5 per minute to Nu.7.5.

TashiCell’s Managing Director, Tashi Tshering, says the services tax will have an impact on the profit of the company. “People who are well-off may not care but for people who are really in the border line, any increase is an adjustment that needs to be done in their income.”

Bhutan Telecom’s General Manager of Marketing Division, Sangay Wangdi, says the five percent telecommunication service tax is actually being imposed not only on mobile but also on fixed line and internet.


He said the rates to other international calls would remain same.

For broadband users, the monthly home package of Nu.399 with five percent service tax will now provide data limit of 3.8GB instead 4GB.

With the implementation of the five percent service tax, an estimated of Nu.125 MN tax return will be paid to the government annually by the two service providers.

 

 

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