Business

Vodafone, Digicel maintain they are VAT compliant

Two major mobile operators have refuted claims of VAT manipulation made by the Consumer Council of Fiji. In a statement released last week, the Council’s CEO Ms Premila Kumar had accused the mobile operators of “VAT manipulation”: The Council has noted that the market leader Vodafone has increased the VAT Exclusive Price (VEP) on its recharge cards and then applied […]

Peni Shute

January 22, 2016 10:39 am

Two major mobile operators have refuted claims of VAT manipulation made by the Consumer Council of Fiji.

In a statement released last week, the Council’s CEO Ms Premila Kumar had accused the mobile operators of “VAT manipulation”:

The Council has noted that the market leader Vodafone has increased the VAT Exclusive Price (VEP) on its recharge cards and then applied the new VAT rate to maintain the price of recharge cards.

Vodafone Fiji’s Head of E-commerce and Corporate Affairs, Mr. Shalendra Prasad,  said:

We take FRCA as the authority on the administration of the VAT Decree and any amendments that come into effect.

We have revised all our standard tariffs in line with the 6% reduction in VAT. The revised rates have been reviewed by FRCA.

We have always complied with the provisions in the VAT decree and this time is no exception either.

Ms Kumar also alleged Digicel Fiji had failed to reduce VAT accordingly:

Digicel failed to reduce the price or VAT component of recharge cards/Top up. For example Digicel Top-up for $20 in 2015 included a VAT of $2.22 which remains same for $2016. It is strange that VAT remains $2.22 for $20 top-up despite reduction of VAT by 6%

The Council however commends Digicel Fiji for revising its rates for SMS and internet data pass to reflect the reduction of VAT from 15% to 9%.

Mr. Satish Narain, Digicel Fiji’s PR and Sponsorship Manager, maintained they had reduced their rates and handsets prices to reflect VAT reduction.

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