Repeal simcard tax, mobile phone users plead with govt

By The guardian reporter

Simcards

Some mobile phone users have once again appealed to the government to revert its decision of levying excise duty on simcards, saying they are unable to pay it and that it undermines new
initiatives aimed at enabling many people to access the simcard service.

Speaking to this paper at the weekend, interviewed Arusha residents said if the government decision is implemented, it would have negative consequences.

“The move works against government’s initiatives as championed by Universal Communication Service Access Fund because very few people would manage to communicate through mobile phone,” said Job Saitoti from Unga Limited area.

He said the Fund intends to increase the number of mobile phone users in rural areas but the government wants to be a stumbling block, which is unfair to the poor Tanzanians.
He said there is fear that the introduction of 1000/- monthly tax will result in disconnection of millions of Tanzanians who depend on mobile communication services.

Other residents identified as Flora Njau and Matilda Msangi from Kwa Mrombo area, said mobile communication is no longer a luxurious item as considered by many people.

“This is a very important tool of communication that helps us in various social and economic issues, thus doing so would hinder development,” they said.

According to them, the government should look for alternative means of collecting tax instead of pressing low income earners.

Humphrey Lyatuu, from Ngarenaro area said if the fee is introduced more people would no longer be connected.
“We Tanzanians know each other, daily meal is a problem to many of us, so introduction of the duty free is another burden which many people would not handle,” he said.

Already the government has issued contradictory statements about the proposed tax, causing misunderstandings between mobile phone operators and general public. The first statement was issued in July this year by the Minister for Finance Dr William Mgimwa, saying that the fee would not be charged until complaints were resolved.

He was quoted as saying the government had deemed it important to analyse thoroughly the raised views by the service providers.

The views were channelled through the Mobile Operators Association of Tanzania and the general public.
The tax on mobile phone simcards was passed by Parliament which ended last July through the Finance Act of 2013.

Few days later in September this year, the government through Tanzania Revenue Authority (TRA) came with another statement saying already the tax had been implemented since July this year despite the Finance Minister’s ban.

Briefing journalists on the simcard charges, TRA Taxpayer’s Services and Education Officer, Frank Mwaselela was quoted as saying the exercise has been implemented since July 1 this year.
He went on to say that customers are being charged according to the Finance Act, 2013 which was endorsed during the 2013/14 parliamentary budget meeting.

“Though the government assured the public that it would not carry on with the implementation of the proposed simcard tax until the matter was addressed by the National Assembly in the following parliament
session, customers have been charged all along as was endorsed in the
previous Parliament session,” he asserted.

Statistics show that that there are 18 million registered Simcards, implying that if agreed the government would collect 18bn/- from tax per month.

SOURCE: THE GUARDIAN