Though there will be obvious increases for land-line, internet and LIME TV customers, mobile customers will see “no real changes with VAT”.
That’s according to Herman Edward, head of Finance at LIME, who attempted to make it clear to the public in a statement issued recently.
Hermain explained: “Previously, mobile services were charged 15 percent telecommunications tax, so when you did a top-up or when you were charged for usage on your mobile account, there was that extra hovernment tax. VAT now replaces the telecommunications tax. Since the rate is 15 percent, the tax will not make topping up more costly, and postpaid customers will not see any tax-related increase in the usage charges on their mobile bills.”
Hermain said other LIME services will reflect an increase due to the VAT charge but the base prices will not be raised.
“Prior to October 1, 2012, landline, internet and LIME TV services were not subject to sales tax. Though customers will pay more for those services with VAT, prices are unchanged. Bills issued in October will reflect service-usage charges for September. VAT will not be applied to the usage charges on those bills. VAT, however, will be applied on the monthly rental charge for the month of October and this will be reflected in customers’ October bills,” Herman explained.
He added: “There is also positive news as relates to equipment such as mobile phones, internet modems, landline handsets and other telecoms access devices.VAT replaces the previous consumption taxes on such products, so customers will see no increase in cost as relates to their purchase, and in some cases there will be decreases in cost.”
LIME’s new general manager, Chris Williams, said it is important for LIME customers to have all the necessary information at their disposal.
“It’s important to us to keep our people informed so that they can know exactly what to expect. We are committed to providing value for money as we strive to make every part of our customers’ experience with us uncomplicated, pleasant and enjoyable,” Williams said.