Rwandan operators against proposed 10% tax on airtime
TELECOMPAPER - 2 days ago
Thursday 5 June 2014 | 13:56 CET | News
Edition: International Log
MOBILE & WIRELESS
Mobile operators in Rwanda have called on the government to put asidwe
the proposed 10 percent levy on airtime, saying the move will counter
efforts aimed at deepening access to telephone and internet services,
the New Times reported. The government proposed a 2 percent increase
on excise duty levied on airtime to 10 percent in the 2014/2015
national budget, up from the current 8 percent. The increment will
fetch bring the government RWF 2 billion in the next fiscal year if it
is implemented, but could stifle sector growth, according to the
telecoms. Over RWF 906.8 billion is projected to be raised from tax
revenues by the tax body to fund the proposed RWF 1.7 trillion 2014/15
financial year budget. MTN said it was wrong to categorise airtime as
a luxury good, which the proposed excise duty levy is targeting. Tigo
Rwanda said the increase will hurt the industry and raise the cost of
doing business. Airtel Rwanda said the increase will affect the
subscribers, who will ultimately suffer the burden, slowing mobile
phone penetration. The company, however, appreciated the fact that the
government had made the tax progressive for the last two years.
Categories: Mobile & Wireless
Companies: Airtel Rwanda / MTN / Tigo Rwanda
Countries: Rwanda
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