Mobile Talktime and Internet Charges Set to Rise with New Tax Hikes

Mobile phone users are likely to face increased costs as supplementary duty on cellphone usage is set to rise from 20 percent to 23 percent. This hike will push the total burden of supplementary duty, value-added tax (VAT), and surcharge on mobile services in terms of Mobile Talktime and internet charges to over 42.45 percent from the current 39 percent stated in a report.

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The decision comes as part of a broader move to increase revenue through higher VAT and supplementary duties on 43 goods and services, including restaurants, air travel, sweets, hotels, and clothing. These items, which currently incur VAT rates of 5 to 7.5 percent, will soon be subject to a uniform 15 percent VAT.

A formal notification outlining the revised tax rates is expected soon.

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