Saturday, March 17, 2007

Uganda Telecom Taxed Higher Than 218 Other Countries

A global trade association representing GSM mobile operators in 218 countries has released a study that shows Ugandan mobile users are one of the most taxed in the world.
In the same study they come to the conclusion that lowering excise duty on air time will lead to higher collections in the future as phone usage climbs.

The immediate shortfall in the excise duty will be more than bridged by improved corporate taxes by telecommunication companies. Uganda's excise tax on airtime is 12% compared to Kenya's 10% and Tanzania's 7%. In addition, 18% VAT is charged on airtime. Therefore, for every sh100 shillings of airtime we use, about sh30 goes into paying taxes.

Read the rest from the editorial in New Vision

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