Vodacom hiking prices because of VAT increase

Vodacom will increase the prices of its services from 1 April, when South Africa’s VAT increase kicks in.

The company has started to send notifications to customers via SMS, stating:

Dear Valued Customer, The National Treasury announced an increase in Value Added Tax (VAT) from 14% to 15% effective 1 April, 2018. There will therefore be an adjustment to your subscription as our services are subject to VAT. Yours sincerely, Vodacom.

Vodacom told MyBroadband that all billable services will be subject to the VAT increase from 14% to 15%, announced by National Treasury in February.

“Billable services include contract subscriptions, bundle services, and out-of-bundle rates for voice, data, and SMS services,” said Vodacom.

Increases will average 1%, and the new pricing will be published by 20 March.

Now read: Vodacom’s cheap broadband trial it is keeping quiet about

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Vodacom hiking prices because of VAT increase