Tax hike will have ‘serious impact’ on MTN Rwanda

30 Jun 2009

In an interview with East Africa Business Week, MTN Rwanda’s CEO Khaled Makkawi has revealed that the government’s decision to increase excise duty on airtime from 3% to 5% commencing 1 July will effect the mobile operator’s projected growth for 2009. ‘That increase was a surprise to us, especially such increase coming in the middle of the year,’ Makkawi said, adding: ‘Such increment was not budgeted and has to go through my budget. When any amount comes suddenly out of the budget, I have to get this money from other areas. Surely, it will affect our promotions and expansion.’ The report states that MTN Rwanda, which generates 90% of its revenue from airtime sales, will be forced to cut the additional 2% from other areas where it had planned to use it to boost penetration, introduce new products and promotions in order to boost sales.

Rwanda, MTN Rwanda