Zimbabwean operators call for tax reduction

Zimbabwean operators call for tax reduction

Top executives at Zimbabwean operators Econet Wireless and Telecel have urged the government to reduce the tax burden faced by the country’s service providers.

As reported by IT Web, Econet Wireless deputy executive officer Roy Chimanikire tallied the operator’s tax contributions, noting that it paid ZWL12.2 billion (US$34 million) for the fiscal year ending February 2021.

This figure equates to around a third of the operator’s total revenue and is over 14 times its net profit. Chimanikire stated that the telecoms sector appears to incur more taxes than other sectors, noting that Econet Wireless pays a 5% health levy, 15% VAT, 25% corporate tax, 3% universal service fee and 2% IMT tax. He called on the government to lower or remove some of these taxes.

Angeline Vere, CEO of state-backed provider Telecel, has also recently called for negotiations with the government to reduce the high level of taxation imposed on the sector. The issue is particularly pertinent given the high levels of inflation faced in Zimbabwe.

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