In response to the introduction of 10 percent exercise duty on text messages and internet services in 2015/2016 national budget, mobile service providers have effected a tariff hike on their services to customers.
In his presentation of the financial-year plan in Parliament on June 22, 2015 the Finance Minister Goodal Gondwe announced the new tax measures as part of effort to broaden the tax base as the national budget implementation wont depend on donors contribution.
In a press statement issued over the weekend, both Airtel Malawi and Telecom Network of Malawi(TNM) have announced new tariffs to keep up with the new tax regime effected on May 28, 2015 as the duty exercise has already been implemented by government.
TNM in a statement said that the revised rates aimed at keeping pace with corresponding obligation and compliance with new tax measure introduced in 2015/2016, fiscal year.
TNM customers will be paying MK28 up from MK25 for data services while SMS is MK18 from MK16 for TNM to TNM calls and to other networks is now MK25 from MK22 while international call SMS is up now at MK45 from MK40.
In reaction to the tariffs’ hike through an interview with the Maravi Post on Tuesday evening, Andrew Kumbatira, Malawi Communication Regulatory Authority (MACRA)’s Executive Director said his orgainisation has written the government on the need to scrape off 10 percent exercise duty on text messaging and internet services saying many Malawians will feel the pitch of such unrealistic decision.
“We have taken the matter to government as whether this is the right way of sourcing revenues to already distressed Malawians to the current economic turmoil by imposing this tax measure to them as this is unrealistic for a considerable government to make such a decision”, said Kumbatira.
Speaking on the same, John Kapito, Consumer Association of Malawi (CAMA)’s Executive Director wondered as to why government decided to introduce such a tax measure considering the conditions Malawians were living saying it was highly unlikely that the tax measure would be reversed as its implementation has already executed.
“Reserving the tax measure this time will be hard as implementation has been effected. But if government does that it will score a point of a listening government as many people have raised concerns on matter”, said Kapito.
However, Malawi’s mobile calling and internet costs are among the highest in sub Saharan Africa and the world which milking the poor’s minutes and hard-earned resources .
