Tanzanian telcos to pay 1% universal service fee?

19 May 2015

A new draft resolution could mean that Tanzanian telcos have to pay a 1% universal service fee, Reuters reports, citing Vodacom Group chief executive Shameel Joosub. The move has been conceived as a way of promoting economic growth, and could lead the government to scrap plans to compel local mobile network operators (MNOs) to list on the Dar es Salaam stock exchange – a proposal which was badly received by the providers themselves.

Joosub commented: ‘[This] is the latest version [of the new telecoms tax-based proposition] that has come out, which we think is a lot more reasonable and gives companies the choice, instead of forcing them [to list].’ Operators affected by the potential tax implementation include the Tanzanian units of Vodacom and Airtel, Millicom Tanzania (Tigo) and Tanzania Telecommunication Company Ltd (TTCL).