Zimbabwe proposes telecoms tax hikes

15 Sep 2014

The government of Zimbabwe is proposing the introduction of new taxes on the telecoms industry, including further levies on airtime, data usage and mobile handset costs, BiztechAfrica reports. Minister of Finance and Economic Development P A Chinamasa, in his 2014 Mid-term Fiscal Policy Review Statement, noted: ‘Government faces a challenge to raise additional revenue to finance non-discretionary expenditures. I therefore propose to levy excise duty of 5% on airtime for voice and data, with effect from 15 September 2014.’ He went on to say that an earlier reduction of taxation on the purchase of new cellular handsets, which was implemented in August 2009, had had the desired effect of stimulating growth in the cellular market, and he would therefore be upping the tax rate on device sales to 25% from mid-September.