Consumers who are buying internet from mobile operators have to pay extra VAT on the service due to inefficiency of the tax office.
The government in the current budget decided to reduce VAT on internet service at the consumer level from 15% to 5% and subsequently issued a statutory regulatory order (SRO) on Jul 1.
But, the incomplete SRO, issued hurriedly, is only applicable to land-based internet service providers (ISPs). Due to these anomalies, internet service provided by the ISPs will be charged 5% vat while Telco internet users will have to pay 15% vat.
A government official said, “It is an unintentional mistake as the SRO was issued hurriedly.”
He said, the mistake would be rectified, but it needs some times.
“We expect to amend the SRO by end of September or early October. Till then consumers have to pay 15% vat on mobile operators’ internet service,” he said.