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The move, part of the much-awaited relief package announced by the Federal Cabinet to help the financially-strapped telecom sector, will benefit companies such as Vodafone Idea, Bharti Airtel, and Reliance Jio
Telecom4 months ago
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No increase in price of recharge cards: Etisalat
Five per cent VAT will apply on actual usage, and not on prepaid credit.
"Etisalat has introduced five denominations of recharge cards sold at Dh30, Dh55, Dh110, Dh210 and Dh525 to ensure customers have sufficient credit to subscribe to existing data and combo packages after adding 5 per cent VAT. The five per cent VAT will only apply on the actual usage, and not on the prepaid recharge cards value. Prepaid users will not pay any extra fee when they recharge," the management said.
Meanwhile, Etisalat has asked distributors to adhere to the approved pricing policies and not to levy any additional fee, and cautioned customers not to pay more than the amount on any of its recharge cards.
Customers are also being encouraged to report any unwarranted price increase in the wake of the VAT implementation.
Etisalat had earlier announced that starting January 1, 2018 it will start collecting VAT with a standard rate of five per cent on behalf of the government, which will be added on applicable products and usage of its services as per the UAE Federal Tax Authority.
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