Internet Service Providers cannot hike internet charges: MoIC

The government has clarified that Internet Service Providers (ISPs) are not allowed to raise price of Internet services that they are providing to consumers.

After its decision to impose 13 percent telecommunications service charge (TSC) on Internet services, including mobile data, drew criticisms from all quarters, officials of the Ministry of Information and Communications said that they (ISPs) should not increase existing prices.

The government started levying 13 percent TSC on Internet as well as increased TSC on voice telephony by 2 percentage points to 13 percent effective from the new fiscal year i.e. Tuesday.

ISPs have already notified their customers that 13 percent TSC will be levied on package cost now onwards. Before this, the government has been collecting only 13 percent VAT from Internet service.

ISPs maintain that they are not charging any extra fee on consumers.  ISPs argue that as the finance minister himself has stated that TSC is to be collected from consumers, there is no reason to point fingers at ISPs for increasing the price of Internet service.

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