Telenor Pakistan is going to increase service charges on Card Reloads


Telenor Pakistan is going to increase service charges on card reloads/easy-loads to 7
percent, said a notice available on Telenor’s website.

These New services charges will be applicable from February 15th, 2012.

Website notes:
Increase in surcharge deducted from recharge

Dear Customer, kindly note that the surcharge being deducted from recharge will be increased to 7% with effect from 15th Feb 2012.

Earlier Mobilink also increased the service charges on credit reloads/easy-share to 7 percent, in addition to other charges/fee already in place.

It merits mentioning here that Telenor had imposed 1.5 percent admin fee on card reloads in June 2011, which was taken back in August 2011 but service charges were increased from 5 to 6.5 percent.

Operators defend these additional charges due to increased operating expenses. They also justify such additional charges by pointing towards low ARPUs and tariffs in Pakistani market. However, repeated additions in such charges and massive taxes on telecom services is putting the common customer with average usage under a lot of burden.

Consistent increments in service charges are raising serious concerns, while masses are considerably asking for a check on ever decreasing cellular tariffs.

Charges/Taxes on Rs. 100 Card (for Telenor Customer after February 15th):

•Withholding Tax @ 10% = Rs. 10
•Service Charges @ 7% = Rs. 7
•GST on remaining amount of Rs. 83 @19.5 percent = Rs. 16.19
•Total Taxes + Service Charges: 33.19
Or in other words, with Rs. 100 card – you get only Rs. 66.81 for telecom services while remaining amount goes under the head of taxes, services charges.

Explanation: Withholding tax and service charges are deducted right away when you load a card of Rs. 100. With remaining Rs. 83, you will have to pay 19.5 percent GST on all calls, SMS, MMS or for any other usage.

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