Ugandan mobile operators call for no VAT
Monday July 27, 2009
Mobile phone and telecommunications manufacturers in Uganda have called on the government to scrap VAT for their goods.
Industry figures said the abolishment of the 18 per cent VAT rate on mobile phones plus the 0.3 per cent clearance fee could help to increase mobile phone penetration in the country and enable consumers to benefit from improved technologies, reports New Vision.
It is also thought that the reduction in VAT could provide a boost to the economy by encouraging more people to spend on mobile phone goods and develop the domestic market.
Dorothy Ooko, Nokia communications manager for East Africa, said: "We believe that if Uganda does not remove VAT on its mobile phones then the Ugandan market will end up increasing parallel importation from Dubai and Kenya."
Neighbouring country Kenya recently announced in its national budget last month that it plans to scrap VAT on all mobile phones, cellular networks and telephones.