Tanzania: Vodacom Says Huge Tax Increase Not Linked to New Monitoring System

Mergers, Acquisitions and Financial Results

Vodacom has refuted reports that the huge increase in tax collection from the leading mobile telephone company in July is linked with installation of a monitoring system by a regulatory authority.

Vodacom's Executive Director, Ian Ferrao said in a statement yesterday that the 1.9bn/- tax payment for July this year which rose from an average of 360m/- per month was not a result of installation of Telecommunication Traffic Monitoring System (TTMS) by the Tanzania Communications Regulatory Authority (TCRA).

He said it was a result of the Finance Act 2016, which widened the tax scope to include 10 per cent excise duty on money transfer services on top of the 18 per cent VAT that is already payable.

"Our July returns now reflect an incremental 1.6bn/- in tax payable per month. This result is in not linked to any monitoring systems, nor does it reflect previously unpaid tax.

Rather simply, it reflects the changes to the new Finance Act 2016 where the telecommunication industry as a whole has been subjected to more taxation," he said in the statement. Read the full story here:
Source: Tanzania Daily News