Comments on: Sri Lanka “encourages” CDMA rollout by increasing duty on handsets

By: samarajiva

samarajiva — Thu, 13 Apr 2006 12:44:07 +0000

Mar. 20 (LBO) – Sri Lanka’s telecommunications regulator has upheld two private fixed operators’ claim to import handsets duty free, and blocked the country’s main investment body’s move to tax the instruments, a top official said.

Last month, Board of Investment of Sri Lanka (BOI) slapped a 33 percent import duty on Code Division Multiple Access (CDMA) handsets with immediate effect.

CDMA is a low cost wireless technology that has been effectively used world over to provide cheaper connectivity to rural homes.

Though the technology is similar to mobile phones, the handsets are bulky desktop units like standard fixed line units.

For full story: http://www.lankabusinessonline.com/fullstory.php?newsID=901928752&no_view=1&SEARCH_TERM=5

By: samarajiva

samarajiva — Tue, 21 Mar 2006 09:36:23 +0000

Well, at least the dissonance in government actions is not intentional.

Just that the Board of Investment has gotten into taxation, now that it has been rebuked for not bringing in enough investment. Perhaps it should be renamed Board of Taxation and Investment?

Today’s Daily Mirror reports:

TRC urges BOI to remove import duty on CDMA sets

TRCSL yesterday made a written recommendation to the Board of Investment (BOI) to consider revoking their earlier decision to impose a 33% import duty on CDMA handsets.

According to TRCSL Director General Kanchana Ratwatte the recommendation was made aiming to keep CDMA cost low, so that it is more accessible to the rural masses.

The BOI recently imposed an 18% import duty and a 15% Value Added Tax on CDMA handsets.

Contd on page 2 The two wireless local loop operators (WLL), Suntel and LankaBell were then iformed that the duty was applicable on all units sold since CDMA services were launched last year.

Since CDMA services were launched in mid 2005, both Suntel and Lanka Bell have sold an estimated 200,000 connections.

By: Mahinda Herath

Mahinda Herath — Thu, 16 Mar 2006 10:12:43 +0000

Hey, look at this this!

“Sri Lanka Telecom (SLT), which is partially owned by the government and Japan’s NTT and pays taxes regularly, however has got away, despite selling around 100,000 CDMA connections, according to the telecom watchdog”

The “….. has got away, despite…” story of LBO is rubbish. Sri Lanka Telecom has always paid the duty on CDMA handsets at 33% and is continuing to do so.

By: Sanjana Hattotuwa

Sanjana Hattotuwa — Wed, 15 Mar 2006 09:20:28 +0000

What a wonderful example of the sheer absurdity that defines so much of public policy in this country.

By: Harsha

Harsha — Wed, 15 Mar 2006 08:07:23 +0000

on the one hand the BOI wants to increase the cost of connection to the user by increasing handset taxes on Lanka Bell and Suntel and on the other TRC has threatened to arrest (yeah, arrest) the CEO of SLT if he does not reduce connection charges on their CDMA phones?

By: The Benevolent Dictator

The Benevolent Dictator — Tue, 14 Mar 2006 23:55:33 +0000

LBO is quite famous for these typos. I remember a few months ago they reported two different Net Profit figures for the same company, and an absurdly high share capital for the same company, all in the same article! I love their article titles but they need a better proof reader methinks.

By: samarajiva

samarajiva — Tue, 14 Mar 2006 10:28:12 +0000

I was hoping LBO would correct this obvious typo. The mobile numbers are approximately:

Dialog 2,200,000; Celltel 578,000; Mobitel 408,000; Hutch 306,000; Total 3,400,000

By: ivap

ivap — Tue, 14 Mar 2006 08:44:15 +0000

From the LBO story

However, mobile penetration has skyrocketed with 3.4 billion users

3.4 billion ? surely this can’t be correct, can it?