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$1.6 Trillion Mobile Services Venture by Vodacom Bestows Eminence and Innovations in Mobile Assistance in Enhancing the Revenue of Tanzania
Posted On 23 Jun 2020
By Abdul Rahman Bangura–
Photo Credit: Vodacom
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- $1.6 trillion has been financed by VODACOM Tanzania from 2012 to-date, giving it prominence in invention of mobile services in the government. It made the biggest telecom one of the main taxpayers after paying about $1.9 trillion in myriad of taxes to the government in the past five years.
Shabu Maurus – a partner with Auditax International, brought about the remarks in a research of Vodacom Tanzania’s assistance in terms of taxes and fees as well as other charges and how they interpret into public goods and services. During the period under review, Vodacom grew at a remarkable average rate of 8% to list annual total tax payment of 435billion In 2020.
Few of the taxes that Vodacom is compelled to pay like other mobile operators include taxes and fees are payable to Tanzania Revenue Authority (TRA), Local Government Authorities (LGAs), regulators, social security funds and telecom fund.
Instance of the most common taxes payable to TRA are VAT, Corporate Income Tax (CIT), Excise Duty, Import Duty, Service Levy, Property tax, Advertisement tax, Stamp duty, Skills and Development Levy (SDL), Gaming tax, Withholding tax (WHT) and PAYE.
There are also contributions both to the Workers Compensation Fund (WCF) and to the National Social Security Fund (NSSF). The business license fee and service levy which are payable to the LGAs.
The regulatory fees and taxes are namely the common service levy to the Universal Communications Services Access Fund (UCSAF) and regulatory fee (royalty), numbering fee, license fee and frequency fees are paid to TCRA.
In extension, License fees such as the e-payment system and the e-money issuer from the central bank (BOT) and different business License fees from LGAs. Separated from paying various taxes, the telecom company has participated enormously into job creation to over 550 employees and more than 100,000 Wakala’s countrywide.
The telecom company has been financing growth of local business through investment of local goods and services which have providing to real value creation in Tanzania.
According to latest data from the Tanzania Communication Regulatory Authority (TCRA) shows that having over 15 million subscribers, Vodacom boasts a 32% market share. M-Pesa, Vodacom’s mobile money product is also a leading brand with mobile money customer market share of 39.3%.
TCRA statistics reflect further that as of March, 2020 there are seven mobile operators in Tanzania which together serving over forty-eight million mobile subscribers.
During the period under review, Vodacom became the only mobile operator to comply with the Tanzania’s Electronic and Postal Communications Act No. 3/2010, requiring domestic telecoms companies to issue at least 25% of their shares on either the Dar es Salaam stock Market (DSE). This, the listing more than 40,000 Tanzanians were allowed to own shares in the telecom giant and share in the profits. The listing also provides the much-needed transparency, both in terms of business and taxes.
For New Africa Business News (NABN) Abdul Rahman Bangura Reports, Africa Correspondent
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