SIM cards
Mobile Operators Association of Tanzania have denied
being consulted on the 1,000/- monthly tax on all SIM cards which
became effective on July 1, after the 2013 Finance Bill was passed by
Parliament on June 28, this year.
In a statement issued to the media, the Association said it met with the Parliamentary Budget Committee in Dodoma on June 20, this year to seek clarification on the definition of telecommunication services as stipulated by the 2013 draft Finance Bill, following the government’s move to impose a 14.5 percent excise tax on services offered by the sector.
At the time of the meeting, telecommunication services were defined as: a service of any description provided by a telecommunication company by means of any transmission, emission or reception of signs, signals, writing, images and sounds or intelligence or information of any nature, by wire, optical, visual or other electromagnetic means or systems.
“We were therefore, as mobile operators not a part of discussion on the introduction of the new tax on SIM Cards,” read part of the Association’s statement.
“We call upon the government to reconsider the 1, 000/- monthly charge per SIM Card as this will facilitates further growth of the telecommunication sector in Tanzania,” MOAT reiterated in the statement.
Tanzania has a mobile penetration of about 48 percent. This translates to approximately 22 million mobile phone users, out of which 8 million spend less than 1, 000/- per month on mobile communications.
The Association went on to say that although it understands the government’s need to access funds for various development initiatives targeting the poor, the proposed 1,000/- charge per month which became effective on July 1 is contrary to the government’s goal because it penalises the very same people who are the focus of these development initiatives because they also rely on these communications services to improve their lives.
According to media reports, Finance Minister William Mgimwa plans a meeting with mobile operators, TRA, TCRA on the tax.
Atuza Nkurlu of SJMC reports that some members of Parliament have supported the people’s complaints against the tax fee.
Speaking to The Guardian through a telephone interview the Member of Parliament Singida East, Tundu Lissu said the tax will affect millions of Tanzanian citizens who use mobile phones.
“We MPs had strongly objected this. I argued in the House that if we really want money, we should stick to the mining companies," he said.
Lissu said most of the MPs will not feel the pinch because they have a lot of money, adding that ordinary citizens are the ones who will be most affected by the tax.
He said that the government should stop squeezing small people and instead deal with the big companies.
Capt (rtd) John Chiligati, MP for Manyoni East told The Guardian also through a telephone interview that it was true that the MPs had passed the bill and argued that in this the world anything which involving money was quite painful.
"Tanzanians should know that development is painful. Thus we should know that pain brings development in one way or another," he noted.
Chiligati added that the MPs will ensure that the money collected will be used for the betterment of the people for development of sectors such as education and water services.
Chiligati cited the Parliamentary Budget Committee formed under the chairmanship of MP-Andrew Chenge (CCM) which is to ensure the government finds new areas of tax collection.
The committee is also tasked to make follow ups to ensure the budget passed by the parliament is implemented by the government institutions.
Commenting on the mining sector, Chiligati said that the parliament has had a look at the sector and found that it is already paying higher tax, as it has risen from 3 to 4 percent this year.
In a statement issued to the media, the Association said it met with the Parliamentary Budget Committee in Dodoma on June 20, this year to seek clarification on the definition of telecommunication services as stipulated by the 2013 draft Finance Bill, following the government’s move to impose a 14.5 percent excise tax on services offered by the sector.
At the time of the meeting, telecommunication services were defined as: a service of any description provided by a telecommunication company by means of any transmission, emission or reception of signs, signals, writing, images and sounds or intelligence or information of any nature, by wire, optical, visual or other electromagnetic means or systems.
“We were therefore, as mobile operators not a part of discussion on the introduction of the new tax on SIM Cards,” read part of the Association’s statement.
“We call upon the government to reconsider the 1, 000/- monthly charge per SIM Card as this will facilitates further growth of the telecommunication sector in Tanzania,” MOAT reiterated in the statement.
Tanzania has a mobile penetration of about 48 percent. This translates to approximately 22 million mobile phone users, out of which 8 million spend less than 1, 000/- per month on mobile communications.
The Association went on to say that although it understands the government’s need to access funds for various development initiatives targeting the poor, the proposed 1,000/- charge per month which became effective on July 1 is contrary to the government’s goal because it penalises the very same people who are the focus of these development initiatives because they also rely on these communications services to improve their lives.
According to media reports, Finance Minister William Mgimwa plans a meeting with mobile operators, TRA, TCRA on the tax.
Atuza Nkurlu of SJMC reports that some members of Parliament have supported the people’s complaints against the tax fee.
Speaking to The Guardian through a telephone interview the Member of Parliament Singida East, Tundu Lissu said the tax will affect millions of Tanzanian citizens who use mobile phones.
“We MPs had strongly objected this. I argued in the House that if we really want money, we should stick to the mining companies," he said.
Lissu said most of the MPs will not feel the pinch because they have a lot of money, adding that ordinary citizens are the ones who will be most affected by the tax.
He said that the government should stop squeezing small people and instead deal with the big companies.
Capt (rtd) John Chiligati, MP for Manyoni East told The Guardian also through a telephone interview that it was true that the MPs had passed the bill and argued that in this the world anything which involving money was quite painful.
"Tanzanians should know that development is painful. Thus we should know that pain brings development in one way or another," he noted.
Chiligati added that the MPs will ensure that the money collected will be used for the betterment of the people for development of sectors such as education and water services.
Chiligati cited the Parliamentary Budget Committee formed under the chairmanship of MP-Andrew Chenge (CCM) which is to ensure the government finds new areas of tax collection.
The committee is also tasked to make follow ups to ensure the budget passed by the parliament is implemented by the government institutions.
Commenting on the mining sector, Chiligati said that the parliament has had a look at the sector and found that it is already paying higher tax, as it has risen from 3 to 4 percent this year.
SOURCE:
THE GUARDIAN
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