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TFL Makes Suggestions For Telecommunications Levy

Telecom Fiji Limited has stressed the Telecommunications Levy under the Income Tax Bill may be anti-competitive for telecommunications firms especially for those that operate VOIP calls. Telecom Fiji highlighted this
20 Oct 2015 10:08
TFL Makes Suggestions For Telecommunications Levy

Telecom Fiji Limited has stressed the Telecommunications Levy under the Income Tax Bill may be anti-competitive for telecommunications firms especially for those that operate VOIP calls.
Telecom Fiji highlighted this in a written submission to the chairman for the Standing Committee on Justice, Law and Human Rights for the Income Tax Bill.
It said given this, traditional voice operators have to pay levy but not the VOIP operators.
Currently the telecommunication levy is imposed on gross voice revenue.
Telecom Fiji said on the monthly average, it pays approximately $12,000 a month in relation to above levy.
“While we do not have any major specific concern in regards to this levy, we note the following under current telecommunication environment,” it said.

Access to fund
Telecom Fiji also indicated it felt that it should have access to this fund somehow to use it to promote/invest in non-viable areas.
“TFL operates lot of USO sites especially under satellite and CMDA i.e. than 150 sites which are not economical,” it said.
“These sites have voice as major component, thus if levy could be excluded from these uneconomical sites.”
Also, it suggested it may be easier if levy is charged quarterly rather than monthly to reduce administrative logistic.
“Further, this levy in future may need to be reviewed noting worldwide Telco Voice Trend is decreasing and now there is more focus on data revenue,” TFL said.
“Most Telco’s is now offering voice as bundle or value added services as per of their offering.”

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