While much buzz has been created by vehicle and fuel taxes in the country, the impending five percent telecommunication tax seems un-noticed. Although it will come into effect from the October 1, Bhutan Telecom says, the tax would lead to a hike in mobile, landline and internet pricing.
As endorsed by the recent session of the parliament, telecom service providers will have to collect applicable sales tax on behalf of the government. All telecom services as notified shall be subject to a sales tax of five percent.
The various telecommunication services used by the people are either prepaid or postpaid services, be it for mobiles, internet or landline.
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Pushpa Mani Pradhan, the General Manager of Bhutan Telecom says they have not decided on how the tax will be incorporated yet.
For TashiCell, they are skeptical about maintaining the service level if the sales tax is implemented.
The General Manager of TashiCell, Jigme Thinley, said rural people who do minimum recharge will bear the maximum brunt of this taxation.
He added that tax education is important, for all the users as it is imposed by the government and not by the companies.
Meanwhile, most people are not aware of the soon to be implemented telecommunication tax.
