Monday, May 9, 2016

VAT on Telcos, not a Huge Burden! Who says? Telecom Minister –True/False!

Citing the cost in US $ terms of per minute calls in Sri Lanka, which are relatively lower than other Countries one compares with, even if one includes the latest VAT imposition on Phone calls, IS NEVERTHELESS a massive increase in the cost of using the phone, even though relative to certain countries, which the Minister is using for comparison have higher costs.

We are a nation hooked on making calls, and we just don’t seem to be able to make our calls short and sweet, and to the point, where procrastinators love to say that they have been very busy on the phone that they did not have the time to do other urgent things due to their being otherwise engaged in the phone.

In this situation, UNLESS people actually realize that this is the obvious time to reduce their phone time due to the price hike, and use their time more fruitfully, it is going to cost MORE. Of course if the people take the SENSIBLE route by cutting down on phone usage, then both the phone companies and the Govt. will LOSE OUT of the higher expected taxes, NEGATING THE WHOLE PURPOSE of the increase.

REMEMBER the Govt. wants you to use the phone the same, so it costs you more, and the Govt, WILL HAVE HIGHER REVENUE. So it is you who will be able to give what they want, or NOT, and show them that their stupid decision, has backfired.

As taxpayers in this case INDIRECTLY, we have the option of teaching a lesson, by withholding ALL unnecessary calls. We can then SOCK it to the Govt. However the Govt. knows that Sri Lankans whilst loving to complain and show anger at the Govt. decisions, in this regard, DO NOT TAKE STEPS TO CARRY OUT THIS THREAT AT ALL! Resulting in hollow words that the Govt. revels in.

Whilst the Minister can make puerile statements that are NOT true, as far as being another bar on the public, reducing their disposable income, ONLY the consumer can determine how they spend their limited means, and how much to allocate to each area. 

As most people use prepaid cards, it is very difficult to know how much one spends on the phone, as NO ONE keeps a track of how much, and hence will just realize that their Rs100 phone card has been used up in double quick time! All I will tell the consumer is to keep a tab of how much you spend on the phone, and if it is too much just cut down on your calls

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