Vodafone Malta Ltd is to start charging the additional 3% VAT charge announced by the government in the 2004 Budget from next Sunday.

For this month, Vodafone has absorbed the additional 3% VAT charge. Contract customers will see Vodafone's prices increase by 3%.

Etalk (prepaid) customers will have the additional 3% VAT service charge deducted on topping up of their prepaid vouchers. For each Lm5 voucher customers will have Lm4.85 topped up in their account, meaning that 15c (being 3% of Lm5) is allocated for VAT purposes. Prices will remain the same as now.

According to Paul Bahia, chief commercial officer at Vodafone Malta Ltd, this is "the best and fairest way" to implement the additional VAT rate.

"Rather than increasing the prices of individual services for etalk customers, such as increasing the cost of SMS to 2.05 cents, we shall deduct the 3% service charge from the cost of the top-up voucher," Mr Bahia said.

"We always have the customers' interests and we absorbed the VAT increase during January while we considered the best method for implementation."

For more information call Customer Service on 247 or phone 2148-2820.