Operators join up to condemn tax hike

25 Jul 2003

Ugandan telecoms operators Celtel Uganda, MTN Uganda and Uganda Telecom have unanimously condemned a proposed airtime tax hike in the 2003-04 budget which would raise excise duty on cellular services from 7% to 10%. The operators contend that in a competitive environment it would be impossible to pass the rises on to consumers, leaving them to absorb the costs. In turn this will adversely affect profits and, in turn, hamper service rollout.

Uganda