Additional Tax on Reload/Recharge from July 1, 2011 – Cellular operators slap new charges on Mobile users

Additional Tax on Reload/Recharge from July 1, 2011 – Cellular operators slap new charges on Mobile users:
1 to 1.5 percent additional tax will be charged on every reload or recharge from July 1, 2011
KARACHI (June 28, 2011) : Majority of cellular operators has announced to hike different charges – operational, maintenance and administration fee – on reloads of airtime or recharge of balance effective from July 1, 2011.
Three out of five operators have announced that 1.0 to 1.5 percent additional amount will be deducted at the time of every reload of balance purchase by customers. These fixed rate charges will be imposed on account of operational, maintenance and administration fee on prepaid and postpaid customers. The remaining two operators might also impose the new charges after passage of time in order to avoid any action against them likely to be taken by the Competitive Commission of Pakistan (CCP).
Telecom sector analyst Haroon Rashid said that cellular operators will enhance their revenues to billions of rupees through their huge subscribers’ base on yearly basis, as the nature of charges will not give the customer any option of avoiding.
If a customer recharges Rs 100 balance, he or she will have to pay 1.0 to 1.5 percent additional tax apart from the other taxes already being charged by the cellular operators.
Three cellular operators had increased call charges to their helplines in April and November by 50 to 100 percent. On October 1, 2008, all mobile phone companies imposed 5.0 percent services charges on the balance recharge through upload and scratch card.
In October 2009, four out of five operators levied 12 paisas, including two paisas general sales tax on every attempt of balance inquiry through SMS.
The new services charged will be additional burden on the customers levied by cellular operators with no reasons and loose regulatory mechanism, Rashid said. The cellular operators should not inflate services charges, which is mandatory to be paid by customers against services, he said.
The operators are allowed to increase service charges without approval of Pakistan Telecommunication Authority (PTA) since the deregulation of telecom sector in 2003-04. They are liable to inform their customers through SMS, websites, and print and electronic media advertisement. The cellular operators are trying to share the burden of increasing operational cost with their subscribers as the price war has eroded their revenues substantially, an official of a cellular company said. The operators’ cost of operations has been increased significantly because of hike in electricity and petroleum charges, he said and added the new charges will ease their burden but not increase revenues.

4 Comments

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  2. aik sitam or sahi, meri jan abhi baqi hai.

  3. FAZLI ALI says:

    MY DEAR
    PTCL ALREADY INCREASE LINE RENT FROM 175 TO 199 .SO PTCL WILL GET HIGH BENEFIT FROM THIS ,WHILE PENSIONERS ARE SUFFERING FROM INCREASE …….
    NO THINKS FOR OTHERS BUT THINKING FOR HIS POCKET

  4. Bahri Karam says:

    All cellular users are requested to install PTCL land line connction and keep v-fone for mobile contact as the prices of mobile companies gone very high and beyond the afford of the poor and middle standard people. As compared to mobile rates the PTCL land line and V-fone are very less and affordable.

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