The Tanzanian president has stepped into the negotiations after wrangles were caused by the new SIM Card tax introduced by the government.
President Jakaya Kikwete in his directive to the Ministry of Communication, Science and Technology has asked all concerned stakeholders, including Tanzania Telecommunications Company Limited (TTCL), Airtel , Vodacom, Tigo and Zantel to discuss ways that could provide the TZS178 billion (US$2 billion) that was to come from the tax.
The Tanzania Daily News reports Kikwete asked the attendees of the meeting at the State House in Dar es Salaam to find optional revenue collection sources.
“I ask you to meet, put your minds together and brainstorm on how the deficit would be covered,” Kikwete said.
In the 2013/2014 budget, the government had put a TZS1,000 (US$0.62) monthly tax on the usage of mobile phones.
The tax was reached after parliament approved the proposal by the government with the decision reached by the parliamentary budget committee.
The money raised from the tax was aimed at helping raise funds to facilitate clean and safe water, electricity and improved infrastructure.
In reaching the decision, Tanzanian mobile operators were angry that they were not consulted although it has been clarified that the tax was limited to consumers and not obligated on operators.
