More ISPs increase prices in response to new Internet tax

Last week we wrote that Liquid Telecom had increased its internet prices following a new 5% tax on the internet by the government.

Other providers have started to announce price increases. One of the 3 largest internet providers in the country, Dandemutande, advised its customers in a letter this week. Here:

Dear Valued Customers

RE: S1 SPECIAL EXCISE DUTY ON ALL TELECOMMUNICATION SERVICES

Please be advised on the 24th of March 2017, the Minister Finance amended the Finance Act (No.2) 2017, Section 312 (49) to levy an additional 5% (Five Percent) special excise duty, which has been designated as a Health Fund Levy. This is to be leivied and credited to the Health Fundy Levy established under section 18 of the Public Finance Management Act [Chapter 22:19] (11/2009) which is in addition to the 5% excise duty which is currently being charged on your statement.

We therefore advise that consistent with this new legislative requirement, we will be applying a 10% excise duty for all our data services with immediate effect. This will reflect on your monthly invoices going forward.

Kindly note that the gazetted effective date of this new requirement has been set to apply retrospectively to 1 January 2017. We have engaged the authorities to request a waiver of the first 3 (three) months and proposed an effective start date of 1 April 2017 in a bid to cushion our clients. We will keep you informed on the development of these engagements.

Yours Faithfully,

The Dandemutande Team

With Dandemutande prices adjusted, it’s now 2 out of the 3 major fixed internet companies that have responded to the new tax. To the best of our knowledge, only TelOne has not increased its prices, yet.

Update: Just to be clear, Liquid Telecom is the parent company of ZOL. ZOL itself hasn’t announced any price increases yet. We sent them some questions earlier and will update once we have a position from them.

Thanks: @tawmug