I am confused!
Telco companies announced that they are going to pass the 6% service tax to the people.
This service tax is not imposed by the telcos, but rather by the government for god knows how many years now. Those who are using fixed lines and postpaid have been paying these taxes, as well as those who subscribe to satellite TVs.
This service tax was increased from 5% to 6% during the last budget presentation..
This tax is imposed by the government, and whatever amount paid by the users goes to government coffers.
Now, the government has called a meeting and successfully asked the telcos not to pass the tax onto the users.
This implies that the government knows that the 6% service tax is a burden on the people.
If the government knows that this 6% service tax is a burden on the people, then logically the government should be the one calling off the imposition of such tax, not only on telcos, but on other services as well. A caring government would not do anything to increase the burden of the people, who is already finding it difficult to make ends meet.
So if the government knows that this is a burden and it claims to be a caring government, it should do away with the tax.
Why has the government asked the telcos to continue absorb this tax, instead of cancelling the imposition of service tax?
After all, this tax is imposed by the government and the revenue goes to the government , not to the telcos. Telcos merely collect what the government want the users to pay.
So why blame the telcos and express shock that the telcos are going to pass this tax to the users?
Who is the culprit? The one who imposes this tax, or the one just collecting from end users on behalf of the one who imposes the tax?
See, this is real confusing!