GCT 20% on phone calls

[DarkAngel]

I see that the government have increased GCT from
15% to 20% on phone calls, guess you should now expect the cost of not only your phone calls but you guys that still use dail-up to access the internet to also get hit by this. ??? hey, i think all of us will have to pay more. ???

[Chris]

* kiss teeth *

bwoy, we "dial-uppers" are already disadvantaged to have to pay per minute for dialling-up and now the tax has gone up to 20% so our bills will increase by approximately 5%. Not fair >

But hold on! It's not only dial-up users will be affected! ADSL customers, Gotel customers and of course all mobile phone users will also be affected . Remember, the tax increase will be on all phone services, wired AND wireless :-\

[yeayea]

I don't see how ADSL customers will be affected, since they don't actually make calls, it's a broadband service.

[Chris]

[quote author=yeayea link=board=1;threadid=615;start=0#msg4400 date=1050633126]
I don't see how ADSL customers will be affected, since they don't actually make calls, it's a broadband service.
[/quote]

Good question. Remember that ADSL is a digital data service over phone lines The costs/charges for these phone lines will be eligible for the tax increase if I correctly understood what the Minister of Finance said. The increase in terms of $$ may not be as much as dial-up usage, but it's an increase nonetheless.

Besides, who is to stop the Govt. if they decide that the ADSL rates will also attract 20% GCT?

[yeayea]

It wouldn't make sense in my opinion. Dark angel says the increase is on calls made. And ADSl doesn't make calls, it's just a service over the phone line that connects to a dslam. It shouldn't be affected by the rate change in making a call.

[Chris]

If the increased tax was on phone calls only then you'd be right, but if I remember correctly the Minister mentioned the increased tax on phone services. Actually, here's an excerpt from RadioJamaica.com's new article on the budget presentation:

"Dr. Davies also announced that the GCT on telephone services will be increased from 15 to 20 percent."

So, as you can see, telephone services include the line rental, etc required for the ADSL line. What isn't clear is whether or not the actual ADSL rates are included in the increase :-\

Here's another area that has me concerned...

"Finance Minister Dr. Omar Davies announced during his Budget presentation Thursday afternoon that General Consumption Tax will be imposed on some goods which are now zero-rated or exempt."

As we know, computer hardware and software are presently zero-rated. The question is ... will their GCT rate change ???

[DarkAngel]

Base on the clarification i got the increase is more general, i.e on phone SERVICES as Chris said, in other words one would see the tax been applied to your overall phone bill. So people on Gotel like myself that pay $2000 (+300 for old GCT) for the 64K package will now pay $2000 (+400 New GCT); people that use pre-paid phones would see a 5% increase in the price they pay for the phone cards, people on post-paid cellphones would see a simular increase on their phone bills and so on, so we will all be affected.
As for the ADSL i am not sure, it use the phone network so i suspect that it will also be subjected to the increase.
People on "broadband" will pay the same amount each month but for dial-up people their overall cost will be determine more by the length of time they stay online since the tax is on the overall phone bill so they will have greater control over the amount they pay, but that may mean spending less time online.


As for GCT on computers and software i don't see it been changed because that would defeat the IT objectives set by the government for this country.

[sicholas]

OK so Omar has done it again. 5% in crease on the telephone service GCT. Wonder how much cheddar the GOVT will accumulate this upcoming fiscal year from this (small) increase. I think it di GOVT has pulled a fast 1 on the PPl of Ja. I mean as Roger Clark said, we can now use 1 phone and call the next 1. With Jamaica's high cellular usage + the mere fact that many Jamaican "LUV FI CHAT" gaurantees a nice amount of $ for the GOJ account. Old people once said that the GOVT love tax PPL dem soon start tax we fi chat" well Grandma there U have it! I'm not against what Omar did, actually it was a wise decesion to broaden the tax net, unfortunately alot of us are goin to feel it, unless we just simply stop using the phone and only use broadband and text messaging while only putting credit on pre-paid phones when the cut-off unless U put on credit area draws near. - but ofcourse alot of us are not disciplined enough to even attemp the above so I guess the plan is not feasable. Lets just all talk alot so that we can give di GOVT $ to help out wid debt financing. It would be really great if we talked our way out of the fiscal deficit, here's our chance.

[Chris]

[quote author=sicholas link=board=1;threadid=615;start=0#msg4424 date=1050789759]...It would be really great if we talked our way out of the fiscal deficit, here's our chance.[/quote]

LOL, I like that one sicholas ;D If one of these talk show hosts ever read it I'm sure that it will be a catchy saying that they'll repeatedly use .

Another thing sicholas, you mentioned a suggestion:

...unless we just simply stop using the phone and only use broadband and text messaging

. But my question is, how do you know that text messaging and some broadband services will not be included in the increase ???

[sicholas]

They said an "increase in the GCT on TELEPHONE service" not telecoms service! thus broadband i.e cw ADSL or jamtec or any other new unheard of player should not be subjected to this infamous 5% increase. PPl who have gotel will suffer though because of the bundled phone service. I believe though that a few individuals, could actually in a sense boycott this telephone service (A LIMITED FEW). I dont have 2 use di phone, the only time I'll pay this 5% increase is when I'm buyin a pre-paid credit card 4 my digiflex fone. & I'll buy that when the "cut off unless you put on credit" area is very close. most of the PPL I communicate with are online antyhow so instant messaging is the shiznit, + we can tx cell fonez via techja or titocell or even ur own internet account. I'f any1 want a voice conversation dem simply find weh yu fi hear yu, dis iz di age of text! Of course dis cheap text not 2 give GOVT 5% increase theory is irrational and very extreme but if Ur hardcore like I am, it can work wid. --- ALSO di GOVT isn't supposed 2 tax telecoms cuz Omar deliberately said "telephone service." so if dem trouble other forms of telecoms the statement was misleading or inacurate or dishonest or any other word U want 2 call it! Then again if di GOVT wanted to put a 10% on the GCT of broadband, who is there to STOP THEM?