Charles Kitwanga
The government has announced plans to install an
electronic monitoring gadget to boost up tax collection from mobile
phone companies.
Despite recording some of the largest numbers of mobile phone users in the region, Tanzania collects amounts that do not reflect the consumer base and profits that the telecom companies are enjoying.
Actually, Tanzania collects less revenue from the telecommunication sector than does even neighbouring Rwanda though the former has, a much larger population, way more cell phone users and even more service providers.
“We are fully aware of that, that’s why we’re coming up with the new technology that will be able to record every data and the amount the government is supposed to get …,” Deputy Minister of State in the Vice-President's Office (Environment), Charles Kitwanga, told the National Assembly yesterday.
He was responding to a supplementary question by Felix Mkosamali (NCCR-Mageuzi, Muhambwe ), who had wanted to know why Tanzania is collecting less than apparently any other East African country.
“We’re at a very advanced stage, the new technology will start its operations across the entire sector of mobile communication … next we meet with stakeholders and we put it into play ...,” explained the deputy asserting that it is expected to start operation in the last quarter of this year.
The new system will keep detailed records of phone calls, text messages and other fees and related charges.
According to Kitwanga, despite the fact that communication charges have continued to go down on yearly basis, but the Value Added Tax has kept on going up.
In 2010/2011, communication sector alone posted a total of 288bn/- to the national coffers higher than the traditional beer and liquor brewery sector which in this cases recorded 270bn/-.
For corporate tax, mobile phone companies have coughed up some 64bn/- for the past five years and by 2010 had put down a total investment of 2.563trn/- which is 46 percent annual growth.
Kitwanga further noted that the communication sector has created 1,934 direct employment and 595, 922 indirect employments across Tanzania.
The minister also allayed any worries over mobile phone money transactions assuring the House that they are operating legally under dual watchful eyes of the Bank of Tanzania which issues the electronic payment guidelines and the Tanzania Communication Regulatory Authority which oversees the entire operation.
He also noted that the government, through the Universal Communication Access Fund has allocated money to deliver mobile phone service connection to remote areas of the country like in Murungu, Komsenga, Rugongwe, Mabaniba and Kizazi villages Muhambwe constituent.
Despite recording some of the largest numbers of mobile phone users in the region, Tanzania collects amounts that do not reflect the consumer base and profits that the telecom companies are enjoying.
Actually, Tanzania collects less revenue from the telecommunication sector than does even neighbouring Rwanda though the former has, a much larger population, way more cell phone users and even more service providers.
“We are fully aware of that, that’s why we’re coming up with the new technology that will be able to record every data and the amount the government is supposed to get …,” Deputy Minister of State in the Vice-President's Office (Environment), Charles Kitwanga, told the National Assembly yesterday.
He was responding to a supplementary question by Felix Mkosamali (NCCR-Mageuzi, Muhambwe ), who had wanted to know why Tanzania is collecting less than apparently any other East African country.
“We’re at a very advanced stage, the new technology will start its operations across the entire sector of mobile communication … next we meet with stakeholders and we put it into play ...,” explained the deputy asserting that it is expected to start operation in the last quarter of this year.
The new system will keep detailed records of phone calls, text messages and other fees and related charges.
According to Kitwanga, despite the fact that communication charges have continued to go down on yearly basis, but the Value Added Tax has kept on going up.
In 2010/2011, communication sector alone posted a total of 288bn/- to the national coffers higher than the traditional beer and liquor brewery sector which in this cases recorded 270bn/-.
For corporate tax, mobile phone companies have coughed up some 64bn/- for the past five years and by 2010 had put down a total investment of 2.563trn/- which is 46 percent annual growth.
Kitwanga further noted that the communication sector has created 1,934 direct employment and 595, 922 indirect employments across Tanzania.
The minister also allayed any worries over mobile phone money transactions assuring the House that they are operating legally under dual watchful eyes of the Bank of Tanzania which issues the electronic payment guidelines and the Tanzania Communication Regulatory Authority which oversees the entire operation.
He also noted that the government, through the Universal Communication Access Fund has allocated money to deliver mobile phone service connection to remote areas of the country like in Murungu, Komsenga, Rugongwe, Mabaniba and Kizazi villages Muhambwe constituent.
SOURCE:
THE GUARDIAN
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