The Federal Communications Commission in the USA has expressed concerns about the tax recently imposed by the Jamaican government on incoming international telephone calls, describing it as anti-competitive and hurtful to Americans.

The tax of three US cents per minute for land phones and two US cents for cell phones announced by technology minister Phillip Paulwell in June is intended to raise billions of dollars to invest in improving Jamaica's telecommunications infrastructure.

But in some instances, the tax amounts to over 100 per cent increase in the price of calling Jamaica from the USA.  In late June, Anna Gomez, the FCC's deputy chief of International Bureau wrote to a congressman in Washington outlining the agency's concerns with the tax.

Gomez told the congressman that the USA considered the tax to be discriminatory.

"The US government, through the State Department, has made it clear to the Jamaican government that the new levy is discriminatory, since it is only assessed on incoming international calls," said Gomez.  "Moreover, the State Department and other US government agencies also strongly objected to the non-transparent manner in which the levy was imposed, with no opportunity for input from stakeholders."

The Business Observer was not able to contact Paulwell's ministry for comments before press time last night.  However, when he announced the levy, Paulwell told parliament that the new Tele-communication Act had allowed for it, and that it would only be for three years.

But, said Gomez in her correspondence with the congressman, "Unfortunately, certain Jamaica carriers with the apparent blessing of the Jamaica government blocked international telephone circuits as a negotiating tactic forcing US carriers to accede to the levy, that will be passed on to US consumers.  The commission is concerned both with the impact of the levy on US consumers and also with the tactics of Jamaican carriers in forcing compliance by US carriers.  These tactics impede commercial negotiations and deny US consumers the benefits of a competitive market.

"The commission staff is continuing to actively consider this matter with other US government agencies and also is reviewing commission policy and procedures that are available to respond to such conduct.  We will keep you informed of future development and any actions that the Commission may undertake."

http://www.jamaicaobserver.com/magazines/Business/html/20050726T230000-0500_84905_OBS_US_RAISES_CONCERNS_ABOUT_PHONE_CESS.asp