East Africa: Region Told to Review Airtime Tax

source: allAfrica
East African Business Week (Kampala)
Bosco Hitimana
28 June 2009

Kigali — Mobile phone experts have advised East African countries to lower excise duty on airtime to 3%.

Only Rwanda has been charging the 3% rate in the region, but increased it to 5 % in this year’s budget.

A report commissioned by the GSM Association notes that East Africa has extraordinarily high tax rates on mobile phone airtime.

Currently, excise taxes are levied at 10% and 12% in Kenya and Uganda respectively.

Tanzania has increased it from 7% to 10%, whilst Rwanda increased it to 5%.

The report titled ‘Taxation and the growth of mobile in East Africa’ aims to understand the potential impact of excise taxation on mobile penetration and usage. GSMA is a global trade association representing the interests of [continue reading]

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