Talks start for Kampala, Dar to scrap VAT on cellphones

Nokia Oyj wants the governments of Tanzania and Uganda to remove Value Added Tax (Vat) on mobile phones, a senior officer has said.Mr Kenneth Oyolla, the company’s general manager for East and Southern Africa told The Citizen in Nairobi on Thursday that the company has already initiated talks with the two governments over the issue. “We are talking with Finance ministries in Uganda and Tanzania over possibilities for the two governments to remove Vat on mobile phone imports,” he said at a function to unveil the company’s two cheap mobile phone models at Serena Hotel in the Kenyan capital. Already, Rwanda and Kenya have scrapped Vat on mobile phones, a situation that disadvantages traders of genuine cellphones in Tanzania, Rwanda and Burundi.“Phones can easily be carried across East Africa…..a trader in Tanzania or Uganda can buy the phones in Kenya or in Rwanda and sell the same in Tanzania or Uganda at lower prices thereby frustrating genuine traders in the two countries,” he said. According to Mr Oyolla, the company focuses at telling Tanzania and Uganda that they will not lose if they decide to scrap the Vat.The countries, he said, stand to benefit through increased mobile phone penetration which will be spurred by decreased prices for the products. Source – The Citizen

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