|
|
Reasons
for Order re Payment of Bills
|
| 10.2
|
Reasons
for Orders re Dispute Resolution.
The written and oral submissions made to the Committee
revealed the urgent necessity of complaint handling mechanisms
being put in place by Operators. The current procedures
tended to discourage subscribers from pursuing their complaints
with a view to obtaining redress within a reasonable time
frame. Creating clear, well publicized procedures and
a relatively independent dispute resolution body within
each operator can help reduce the current levels of unproductive
friction. |
| 11.0
|
Errors
in and/or Unavailability of Billing Records |
| 11.1
|
The
Committee of Inquiry orders that an operator shall bear
the loss arising out of a situation where a billing record
is erroneous or is unavailable. No operator shall charge
average or other unsubstantiated amounts in these situations.
The order shall apply to possible effects of the Y2K problem. |
| 11.2
|
Reasons
for the Order re Errors and/or Unavailability of Billing
Records. The Committee heard evidence of several instances
where an operator had charged average or estimated amounts
when billing records were unavailable or erroneous. This
is patently unfair. If there is an error in the billing
record or if the billing record is unavailable the subscriber
should not be penalized as it is not his/her fault. |
| 12.0 |
Taxation |
| 12.1
|
The
Committee makes the following orders and decisions on
the issue of taxation: |
| 12.1.1
|
Goods
and Services Tax on Monthly Rental
The Committee requests the Commission co re appeal to
the Government to consider amending the relevant legislation
to exempt rentals from GST in the case of all residential
subscribers. |
| 12.1.2
|
National Security Levy
The Committee orders
the operators to charge the NSL at the currently applicable
rate, on the gross invoiced
value excluding NSL. The Committee notes that this is
the amount that the operators would be liable for if
the
NSL is borne by tie company. The Committee believes
that this action will help reduce the considerable
confusion surrounding this levy. Because there is discretion
with regard to passing on the National Security
Levy to subscribers, its imposition on subscribers falls
within the definition of a tariff increase. Therefore,
operators _directed to comply we relevant'. statutory
and license conditions for tariff approvals within
six months from the date of this Order.
Reasons for Order
and Decision re Taxes .
|
| 12.2.1 |
In written as well as oral submissions before the Committee,
subscribers were quite vociferous about several alleged
anomalies in the taxation process. These primarily related
to the interpretation and application of the Goods and
Services Tax (GST) and the National! Security Levy (NSL)
to telecommunication services. Both being matters outside
the scope of the Sri Lanka Telecommunications Act, No.
25 of 1991, as amended, the Committee was compelled to
summon senior officials of the Department of Inland Revenue
to the Hearing. The Committee gratefully acknowledges
the contribution made by these officials. The officials
clarified that the role of the Department of Inland Revenue
is limited to the interpretation of the regulations and
collection of taxes. The main argument advanced by the
members of the public was that monthly rental, being a
recovery over an extended period of the cost of providing
connectivity to the network, should not be liable for
GST. However, the Department of Inland Revenue is of the
view that except in the case of zero rated or exempted
items all other items are subject to GST' at the point
of invoice, from April 1, 1998 (the date of implementation
of GST). Since this is a pass through tax the operators
have no alternative but to pass it on to the consumers.
Whereas business subscribers can set it off against the
output GST the residential consumers have no such recourse.
However, the Committee is persuaded that no relief can
be provided without amending the relevant legislation. |
