Cellcos call for tax-free handsets

12 Jun 2012

Ugandan cellcos have called for the government to scrap taxes on handset sales, arguing that the high price of devices was the main barrier to increasing mobile penetration, reports the Daily Monitor. Representatives from Uganda Telecom Ltd (UTL), Airtel Uganda and Warid Uganda claimed that operators had done as much as they could to make wireless services more affordable: as noted in TeleGeography’s GlobalComms Database, a ‘price war’ between Uganda’s six providers last year saw tariffs fall to below-cost levels until the practice became untenable and pricing structures were stabilised in September. Airtel’s spokesperson, Joseph Kanyamunyu added that neighbouring countries such as Rwanda and Kenya had benefited from implementing similar tax cuts.

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