Vodacom strikes key deals as it repositions pan-Africa operations

Vodacom's new
take on Africa

Operations in key
markets repositioned.

Wednesday, Jun 26th

Kenyatta slaps tax on internet and money transfer charges

Kenya: Uhuru slaps tax on internet and money transfer charges

Mobile money and internet users in Kenya will pay 15% excise tax on internet services and 20% on mobile money transfers after parliament passed the Finance Bill 2018.

The Bill was introduced three months after the official budget was announced and designed to tackle deficits.

In a memorandum sent to parliament on Friday last week, President Uhuru Kenyatta recommended taxes on internet and mobile money transfer services.

The memorandum read: "Telephone and internet data services shall be charged excise duty at a rate of fifteen percent of their excisable value. Excise duty on fees charged for money transfer services by banks, money transfer agencies and other financial service providers shall be twenty percent of their excisable value."

"Excise duty on other fees charged by financial institutions shall be twenty percent of their excisable value," Uhuru said, adding more charges to bank transactions. The fee has until now been 10%.

The 2018/19 budget had proposed to raise the excise tax on mobile money transfer to 12% from 10%, but it has now been increased.

The President did not state how much revenue the new taxes on mobile money and internet will accrue. However, a section of MPs have vowed to challenge the new law in court.

As part of a series of cost-cutting measure affecting government operations, the budget allocated to the Digital Literacy Programme (DLP) has been slashed by Kshs 5.5 billion (US$ 55 million). It was initially put at Kshs 11.9 billion (US$ 119 million) for the current fiscal year.

ALSO ON ITWEB AFRICA

Global Launch of S BLOCK, Kicked Off in Singapore on June 22nd Published on 25 June 2019

The globally renowned 2019 WBF Singapore Technology Conference was held in Marina Bay Sands Hotel on June 22nd, 2019.

EcoCash looks to capitalise on Zim banks, Paynet dispute Published on 19 June 2019

Opportunity for EcoCash to expand into the salary payments category and broaden its revenue stream.

Kenyan consortium launches mobile banking app Published on 22 May 2019

Mobile loan product Stawi introduced, backed by Central Bank of Kenya.