Rwanda Looking to Raise Tax on Telecoms Services
Published on: 13th May 2014
By: Ian Mansfield
The Rwandan government has proposed raising the tax on telecoms services although it says the effect would be minimal on consumers.
A bill proposed in the Lower House would see the existing telecoms tax rate lifted from 8 percent to 10 percent and could help raise Rwf 2 billion (US$2.7 million) for the government this year.
Trade and Industry minister François Kanimba told the Parliament that the higher tax rate had been agreed with the telecoms companies operating in the country.
He said that the government had kept taxes low in the past to encourage initial investment in the industry, and has waived tax and customs duties on telecoms equipment imports.
The tax rate was set at 3 percent of revenues in 2006, but has slowly crept upwards since then.
However, in order to cut the deficit, the government is now raising taxes on telecoms services.
Politicians are expected to approve the tax hike in their next debate on the finance bill.