Telecom

Tanzania to remove VAT on smartphones to boost access to internet

Tanzania to remove VAT on smartphones to boost access to internet
Monday, 14 June 2021 15:08

Tanzanian authorities announced they are waiving the value-added tax on smartphones, tablets, and modems as part of a plan to bring broadband penetration to 80% from 38% by 2025. In addition to affordable data packages, the government wants to make device prices affordable to the population.  

When defending the 2021-2022 draft budget before the parliament last June 10, the Finance Minister, Mwigulu Nchemba (pictured), said improving connectivity is crucial for human and socio-economic development. The day before this decision was announced, Hisham Hendi, CEO of Vodacom Tanzania said “if the government can reduce or remove it completely it will help more customers afford smartphones, meaning more people will be able to have access to data. If we can sort out these main points for the industry and the consumer, I think the future will be positive for our industry.”

As a reminder, telecom operators have been discussing some relief points, including waiving the VAT, with the government since December last year. For the Tanzanian government, which has struggled over the years to make the average gigabit per second (GB) rate affordable enough, the drop in the price of smartphones, tablets, and modems will promote digital inclusion and boost the digital economy. Tanzania is the fifth cheapest country in Africa with the average GB rate at $0.75 according to Cable.co.uk’s "Worldwide mobile data pricing 2021: The cost of 1GB of mobile data in 230 countries" report.

Muriel Edjo

On the same topic
Nigeria eyes $671m data center market by 2030, seeks Chinese investors. Rising mobile data, e-commerce drive sector growth amid tough...
• Nigeria drafts new telecom cybersecurity framework for 2026 rollout• Rules cover incident management, risk assessment, information sharing• Africa now...
• DRC advances talks with Monacosat to launch a national telecom satellite.• Fidelity Bank signals interest in financing the project as Kinshasa seeks...
• Togo launches cybersecurity training for 250 professionals, August 28• Program offers ISO, CompTIA certifications to boost threat response• Togo now...
Most Read
01

It’s a common scene in any Lomé (Togo) market, but it’s telling. A customer hands a 10,000 CFA franc...

The Change Shortage: A Crisis Hidden by the CFA Franc’s Stability
02

Egypt’s handset market is projected to leap from $2.5 billion in 2025 to $4.8 billion by...

Egypt’s $2.5B-to-$4.8B Smartphone Surge Set to Reshape Africa’s Tech Map by 2031
03

Egypt and UNECA launched a five-day workshop in Cairo to strengthen maritime tax audits and IFRS-b...

Egypt Bolsters Maritime Tax Collection With UN Economic Commission Training
04

• ECOWAS plans a rapid deployment brigade of 260,000 troops costing $2.5bn annually.• The force...

ECOWAS needs $2.5bn annual budget for anti-terrorism brigade
05

• Yunus Group opens Ivory Coast unit to finance projects, launch Yunus Pay. • Plans Ghana and Nigeri...

Yunus Group Expands to Ivory Coast, Eyes Ghana and Nigeria
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.