Tanzania’s international and local phone calls will from July 1 cost more after the government hiked up excise duty on the calls from 10 to 12 per cent last week Wednesday.
Speaking during the 2012/2013 national budget presentation, Tanzania’s minister for finance Dr. William Mgimwa announced the increase in excise duty on airtime from 10 per cent to 12 per cent.
The excise duty had been constant since 2009/10.
In the 2007/08 Budget, it was increased from 7 to 10 percent against the 2006/07 financial year.
The government revised the Excise (Tariff and Management) Act in the 2009/10 Budget by charging excise duty on airtime at the point of sale of scratch cards, or credit vouchers. Previously, the excise duty was charged on turnover.
While the over 20 million mobile phone users in Tanzania will have to pay more for their phone calls, the government is also introducing a new gaming tax on “SMS Lotteries” at a rate of 43 percent.
The government through the excise duty measures expects to increase revenue by TSh144.054 billion in the coming fiscal year, according to Dr Mgimwa,
Telecommunications recorded a growth in 2009 out of the 19 sectors led by mobile telephony. Currently, it generates over TSh2 trillion in revenue each year.
Finance ministers across the East African countries make the budget presentations each year on the same day.
