Telenor Myanmar told customers it will be forced to raise prices after the government announced tax increases on SIM cards, mobile and fixed data services.
The State Administration Council increased the flat tax on a new SIM cards by MMK20,000 ($11.30) and imposed a 15 per cent levy on data service revenue.
In a statement, Telenor expressed regret about “the adverse impact on customers in terms of affordability of an essential service” and warned them to be prepared for equivalent changes in data pricing.
Telenor expects the tax increase on new SIM cards to reduce the number issued, with customers opting to retain and recharge existing cards.
The tax hikes are likely to impact pricing for all mobile network operators and ISPs in the country, Telenor noted.
Telenor stated all operators in Myanmar have halted sales of SIM cards “until the changes can be reflected in respective IT systems”.