Cabinet terminates telecom excise scheme
The Cabinet Tuesday approved the reduction of telecom excise rate for both fixed line and cellular services to zero per cent, a change from 2 per cent and 10 per cent respectively.
It also approved the submission of all telecom concessions by the Information and Communication Technology Ministry to be reviewed by the Council of State whether their amendments comply with the relevant laws.Information and Communications Technology Ministry Sitthichai Pookaiyaudom said that the approval is based on the reason that the telecom service is not considered as the luxury service, thus should not be subject to the excise. The new rate takes effect immediately, he added. Sitthichai said that he would ask TOT Plc and CAT Telecom Plc to consider claiming from the telecom operators Bt50 billion in total, which is the amount of the concession fees the telecom operators deducted as the excise payment in the past four years. The Cabinet also approved the termination of the 2003 resolution issued by the ousted Prime Minister Thaksin Shinawatra government, introduced such telecom excise rates of 2 per cent for fixed lines and 10 per cent for mobile phone service. The resolution has also allowed private telecom operators to deduct part of their concession fees to be paid as the excise directly to the government. Then they will share the remaining concession fee with their concession owners TOT or CAT. The cellular operators can deduct 10 per cent of the annual concession fee as the excise, while the fixed telephone operators can deduct 2 per cent. As a result of the 2003 resolution, the total regulatory fees of the private telecom firms have remained unchanged but TOT and CAT have received lower concession fee. Both state agencies have also paid the excise like their concessionaires. The approval yesterday will see all telecom operators resuming paying the full concession fees to TOT or CAT. The Nation
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