UGANDAN REGULATOR CALLS FOR SCRAPPING OF AIRTIME TAX
Scrapping of Excise Duty on airtime is among recommendations in the new telecommunications policy, a Uganda Communications Commission (ucc) official has said."Although mobile phones are available countrywide, few people can afford them because of the 10% Excise Duty on airtime and Value Added Tax of 17% payable by consumers," UCC'S legal officer, Joanita Nampewo, said.
In 2002, the Government charged 5% Excise Duty and collected sh7b. In 2003, 7% was levied and sh10b was realised. This year, it is 10%. "Operators' profits are reduced because they strive to avoid transferring the tax to customers, while capital left over from profits to invest and roll-out decreases," Nampewo said.