Kenyan Ministry Joins Push for Telcoms Tax Cuts
The ministry of Information and Communications is backing efforts by mobile companies to have taxes levied on the industry reduced. peaking during the ITU’s
Forum on Telecommunications Regulation in Africa, Information and Communication Minister, Mutahi Kagwe, said there is need for a tax cut.
"I think there is a case for it. But of course, you have to balance the need for the reduction and the Government's need for revenue," he said.
The forum, hosted by the Communication Commission of Kenya (CCK) and attended by other Africa regulators, was convened to discuss ways of raising access to telecommunication services, by making it possible for service providers to share network and other common infrastructure. obile telephone operators want tax on mobile calls reduced and excise duty removed.
"I am negotiating with my colleague in Treasury to see what can be reduced," he said, but declined to disclose whether the pleas will be factored in this year's budget. That, I will leave to the minister (Finance) but I hope he will consider the proposal," Mr Kagwe said.
The idea to encourage sharing of infrastructure is borne out of the realisation that it could lower entry costs for new companies to participate in the telecommunication industry, increasing competition and lowering access costs to users. Infrastructure sharing holds tremendous promise for Africa, where investment in ICT development is yet to match market demand," CCK Director-General John Waweru said. he commission, he disclosed, is in the process of developing a framework to facilitate harmonious infrastructure sharing, and will be out in three weeks.