Rwanda plans to hike telecoms tax
Rwanda plans to hike telecoms tax
By Mary Lennighan, Total Telecom
Monday 12 May 2014
Government says move will not affect consumers, but telcos are not so sure.
The Rwandan government aims to increase tax on telecoms services in a
bid to plug a budget gap, according to local press reports at the
weekend.
The telecoms tax rate will increase to 10% from 8% at present on 1
July if a bill tabled in the lower house last week passes into law in
the coming weeks, Rwandan daily The New Times reported on Saturday.
The move would generate 2 billion Rwandan francs (EURO 2 million) for
government coffers in the 2014/15 financial year.
According to the newspaper, the government has agreed the proposed tax
rise with Rwanda's telecoms operators.
However, while the Rwanda Revenue Authority's commissioner general
Richard Tusabe was quoted as saying that the increase is "very
minimal" and will not affect consumers, the telcos themselves are less
sure.
MTN's local unit told the paper that it will have an impact since it
applies to both voice and data services, while Tigo said it would
comment at a later date.
Rwanda has made a deliberate effort to suppress its telecom tax in
recent years in a bid to attract investment into the sector. However,
it has crept up steadily from 3% in 2006 to its current level.
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