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Cable Operators Plead For No GST on Data
posted (March 27, 2018)
In a few days when the new fiscal year starts, your internet bill will probably be going up. Whether you buy two dollars mobile data from your corner store - that is now expected to be $2.25, or if you buy one of those slick, high speed Diginet packages at home, for, say, 20 megs: instead of $179.00 monthly, that is now expected to be $201.00 dollars monthly.

The pricing hasn't been finalized yet, and those figures are projections, but either the price, or the amount of data you get for it has to change because - for the first time - GST will now be applied to internet and data sales.

And, the Cable Television Operators Association is pleading with the government to reconsider imposing a GST charge on internet data.

The Association wrote to the Prime Minister a week ago saying, quote, "The application of GST on this technology will affect the most underprivileged in our society, the most remote residents and businesses in our country, the young entrepreneurs needing to communicate with the international market, students' research and studies, and family communications." End quote.

It continues by arguing that the imposition of the tax would effectively increase the cost of communication, online banking, access to online education, and the cost of doing business.

So the association and the wider public are hoping that government has a change of heart like it did last week with the pullback of the GST on land preparation for agriculture.

But with only four days to go before the implementation of the new tax - and the budget debate done - we're fairly certain that the government is pretty locked in on this one. It hopes to raise about 6 million dollars in much needed revenue through this measure. Government says it has lost just about that amount in decreased tax revenue from voice calls.

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