VAT reduction for mobile users

3 Feb 2009

As part of a delayed budget announcement, Zimbabwe’s acting Minister of Finance Patrick Chinamasa has included a cut in Value Added Tax (VAT) on mobile phone airtime, reports ‘I propose to standardise the rate by reducing it to 15% [from 22.5%] with effect from 1 February 2009, in line with the prevailing general level of VAT on other products,’ he said last week. Since the country’s three mobile operators – Econet, NetOne and Telecel – were given the nod by the Reserve Bank of Zimbabwe to bill their services in foreign currency, call tariffs have increased to as much as USD0.33 per minute, which the operators blamed on excessive VAT rates.