Sudan to boost telecoms tax to 30%

21 Dec 2011

In a bid to make up for the loss of oil revenue from the newly independent South, the government of Sudan plans to increase taxes on the country’s telecoms operators, Reuters reports. Under the 2012 budget, which was approved by parliament on Monday, manager of Sudan’s tax office, Mohamed Osman Ibrahim, told reporters that the government will raise sales and services taxes for telecoms firms from 20% to 30%, while a tax on profits will be hiked from 15% to 30%. Sudan lost around three-quarters of its oil output when the South seceded in July 2011. Three companies currently operate in Sudan’s wireless arena, according to TeleGeography’s GlobalComms Database: market leader Zain Sudan, the local unit of Kuwait-based company Zain Group; South Africa’s MTN Sudan; and Sudani, the mobile arm of fixed line incumbent Sudan Telecom Company (Sudatel). Alongside Sudatel, Canar Telecommunication Company (Canartel), which is 89%-owned by Etisalat of the United Arab Emirates, also provides fixed telephony services in the country.

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