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 Tuesday, June 16, 2009

The cost of buying a mobile phone in Kenya has dropped sharply after the government waived the import duty on mobile phones. Kenya's Finance Minister Uhuru Kenyatta cut the 16% VAT on new phone handsets in the government's budget statement - along with reducing import duties on a whole range of other products.

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A recent report from the GSMA said that mobile subscribers across East Africa are taxed at some of the highest levels world-wide. Kenya, Uganda and Tanzania impose mobile-specific taxes which when added to VAT can result in their respective consumers facing taxes as high as 30% in Uganda and Tanzania, and 27% in Kenya, considerably the highest rates in Africa (and the among the highest across the world as a whole).

Source: Cellular News.