Tele Tax

Kris Canekeratne at LBR LBO Tech Conference

Nov 23, 2010 (LBO) – A change in telecom taxes in the 2011 budget where a 20 percent flat levy replaced a series of earlier taxes can result in lower bills for users, a telecom analyst said. “So even users of international calls may not be very much affected.”

Before the budget, a series of taxes made up of a 2.0 percent ‘environmental conservation levy’, a 10 percent ‘mobile subscriber levy’ a 03 percent nation building tax and a 12 percent value added tax were in place.

All this translated into an effective total tax of about 31.31 percent, says Chanuka Wattegama, an independent telecom researcher.

“The new single tax at 20 percent will result in a lower telephone bill.”

The government also imposed a 2.0 rupee per minute tax on international calls.

“Over the last few months there was a sharp drop international calls due to competition,” he said.