THE IMPLEMENTATION and fallout from the newly increased mobile tax may have major repercussions for Flow.
From January 1, Government raised the value added tax (VAT) on mobile services from 17.5 to 22 per cent, a move estimated to earn millions of dollars.
FLOW posted an advertisement letting its customers know of the changes. It stated: “Prepaid customers will experience less usage and may therefore need to increase their level of top-ups. Post-paid customers will notice an increase in their total bill due to the 4.5 per cent increase in the VAT rate. Customers with bundled packages, including mobile, will see the 22 per cent mobile VAT stated separately from the 17.5 per cent VAT on fixed line services.”
However, when contacted as to its concerns and the number of its customers who have opted to abandon their data plans, a company representative said they had no comment to make “at this time”.
Please read the full story in today’s Weekend Nation, or in the eNATION edition.
