Tanzania government reveal plans to cut sales tax (VAT) on mobile phones and computers. The move is intended to boost Tanzania’s
communication sector as well as the economy.
Prof John Nkoma, The director General of Tanzania Regulatory Authority (TCRA) while addressing a press conference said “we are planning to reduce taxes on mobile phones handsets and computers to allow the public easily purchase them since the majority relies on their mobile phones and computers to conduct their businesses.
A report by GSMA in 2009 shows that mobile subscribers across East African region are highly taxed as compared to their counterparts in other parts of the world. For instance Uganda and Tanzania impose mobile-specific taxes which when added to VAT may result to consumers paying taxes as high as 30%
In the year 2009,The government of Kenya cut the 16 % general tax on mobile handsets increasing purchases by more than 200% and the mobile industry generated 8% of Kenya’s GDP.
The Director added that TV broadcasters need to speed up their migration to digital broadcast services to enable the regulator to resell the digital dividend spectrum to the mobile networks.