The Tribune

By NICO SCAVELLA

Tribune Staff Reporter

nscavella@tribunemedia.net

AN independent consumer advocacy group has filed a complaint to the Utilities Regulation and Competition Authority (URCA) on the Bahamas Telecommunications Company’s alleged “double taxing” of its consumers who use the company’s prepaid services.

In a letter sent to URCA, Consumer Action Bahamas (CAB) claimed that consumers were taxed upon their initial purchase of Top Up services from authorised vendors, in addition to being charged with the government’s 7.5 per cent value added tax (VAT) on every “prepaid call and text made and every data package activated”.

When contacted yesterday for comment, BTC officials said they would issue a statement regarding the allegations. However, that statement had not been received up to press time.

A statement posted on BTC’s official Facebook page on Monday said consumers “would not be charged VAT at the time of purchase.”

Nonetheless, CAB, along with other consumers on Facebook, subsequently criticised BTC for allegedly “double taxing” its consumers.

“With BTC charging VAT on prepaid service and BTC customers being charged VAT at point of sale on the same service packages, BTC prepaid customers are being double-taxed for BTC’s service,” CAB said in a statement. “As mobile Top Up is a BTC service sold through its authorised vendors, this formal complaint is lodged against BTC for its failure to publicly respond to or address the double charge of VAT being levied on its taxable service.”

According to CAB, prior to the January 1, 2015 implementation of VAT, BTC had issued various public notices to its customers, explicitly stating that VAT on its prepaid serviced purchased through its “Top Up” facility would not be charged at point of sale by its authorised vendors, but that BTC would charge VAT in-house on its prepaid services, by charging VAT on every prepaid call and text made and every data package activated.

However, CAB claimed that from January 1 until “as late as (Monday),” BTC consumers have reportedly “come forward” with receipts showing that “despite BTC’s public notices, prepaid customers were in fact being charged VAT at point of sale by in-store vendors for BTC’s prepaid services.”

On behalf of “consumers who made such reports” to their group,” CAB said it made “formal online complaints” to BTC’s Facebook and Twitter pages, and provided the company with “the attached receipt as proof of point of sale VAT charge claims by prepaid customers.”

BTC, via their official Facebook page, posted a disclaimer to the allegations on Monday, which said: “All customers purchasing Top Up (to add minutes to their phone) will not be charged VAT at the time of purchase. VAT will be charged only when you use your Top Up to make calls, to send text messages, or to start a data plan. VAT will be charged per minute, per text message, per data plan used.”

However, CAB, along with other consumers on Facebook, subsequently criticised BTC for the statement. CAB said the statement was issued “as though BTC had not acknowledged or would not acknowledge double-tax complaints with receipts as proof, given to them by BTC prepaid customers.”

Another consumer, angry at BTC’s alleged double taxation, said: “It’s apparent that you do not listen to your consumers. It doesn’t make sense repeatedly posting this statement and you’re constantly getting complaints about the tax being applied at purchase. This company is money hungry and has no concern for its customers. Do not bite the hand that feeds you.”

The Tribune contacted URCA officials for comment on the matter, however none was available up to press time.