LOCAL telecoms provider Sure will not be passing on the VAT rise to customers who have broadband internet and monthly mobile phone contracts.

 
Tax, which affects most goods and services rose from 17.5 percent to 20 percent on Tuesday, January 4, but Sure has announced it will be absorbing the increase across these products.

 
The VAT increase will however be increased on pay as you go and pay monthly out of bundle rates.

Andy Bridson, chief commercial officer at Sure, said: "We are still living in economically tough times and I don't think it was fair to pass all of the VAT increase straight to our customers.

"Our Manx based Sure business is achieving very good share in both broadband and mobile, we are doing this by providing the best customer service, best speeds and best value. Absorbing a large chunk of the VAT increase simply means we value and appreciate our customers."

Rival operator Manx Telecom will be raising the VAT on all fixed line, private circuit and pay monthly mobile bills, handset and accessories and pay as you go mobile charges.

Research by the price comparison website Kelkoo suggested that the VAT rise will cost the average household an additional £520.