Dear Claudienne

As a public servant, I have to ensure that my limited financial resources are utilised in the most prudent manner. This includes ensuring that I am not overpaying GCT on the goods and services consumed by my family.

I am a subscriber to Flow Jamaica Limited and am billed $2,500 for the Watch Basic cable package plus an additional $150 for digital control fee on a monthly basis. The company grants a loyalty credit of $250 where your previous bill was paid on time. It is the company’s application of GCT on this loyalty credit which is the source of my concern.

As far as I understand the GCT Act, GCT should be levied on the final consideration of the goods and services, that is price net of discounts, rebates, loyalty credit etc.

I have noticed on my cable bills over the last few months that Flow is billing me for GCT of $463.75($2,650 times 17.5per cent), instead of the correct amount of $420 ($2,650-$250) times 17.5 per cent). This incorrect application of GCT has resulted in an overcharge of $43.75 on my monthly bill.

On the micro level, the amount which I am being overcharged seems insignificant. However, it translates to approximately $2.1875M in additional monthly revenue to the company, if we assume that 50,000 of its customers are so affected. This is over $26M in extra revenue to the company on an annual basis.

The GCT Act mandates that such overpayment of GCT is recoverable by the Tax Department and I implore the company to ensure that the excessive GCT is so remitted and not unscrupulously kept by it.

Where it was retained by the company, I humbly request that a full refund be given to all affected customers and the company re-programme its billing system for GCT to be computed on the net consideration for its services.

KD

Dear KD

According to Flow Jamaica Limited, GCT is applied to the total of products and services billed to the customer (ie charges) net of refunds and discounts. All GCT that is charged (irrespective if it has been fully collected from the customer or not) is remitted to the government.

Flow says that the $250 loyalty bonus is a payment made to customers who honour their obligations to Flow in a timely manner (ie payment of current outstanding amounts by the 28th of each month). This is in effect a thank you for being a valued customer and not a discount for services, the company explained to Tell Claudienne.

Flow said that your “calculations and insinuations” are misleading as “we DO NOT claim the $43.75 in GCT (ie 17.5per cent of $250) as he stated in his letter”.

“Flow is pleased to reward its customers for early payment of their Flow bills and remain diligent in remitting accurate GCT payments to the government,” the company said.

Good luck.

Have a problem with a store, utility, a company? Telephone 511-2436 or write to: Tell Claudienne, c/o Sunday Finance, Jamaica Observer, 40-42 1/2 Beechwood Avenue, Kingston 5; or e-mail: edwardsc@ jamaicaobserver.com