Scrap VAT on Phones-Nokia

{ November 25th, 2008 }

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Nokia wants the VAT scrapped across Africa…

Nokia, the mobile phone manufacturer is lobbying African governments to scrap Value Addition Tax (VAT) on cellular phones. Vice President for Sales Sub-Saharan Africa Loren Shuster has said such a move may not necessarily result in a loss in revenue for governments as subscribers could recover the same from increased usage of airtime. The company insists that this is one sure way to rid countries of counterfeit phones and the negative effects that result from the trade of these gadgets.

“Ghana has done it, and their phone industry is experiencing phenomenal growth as a result of this. We are actually opening a new office in Accra as a result of this,” Shuster said. In Kenya currently 16 per cent VAT is imposed on mobile phone sets and an extra three per cent customs and duty charges making it nearly 19 per cent tax on mobile phones.

Mr Shuster noted that if countries made this move a lot could be achieved on the development front.

via IT News Africa