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 Tuesday, June 30, 2009

In an interview with East Africa Business Week, MTN Rwanda’s CEO Khaled Makkawi has revealed that the government’s decision to increase excise duty on airtime from 3% to 5% commencing 1 July will effect the mobile operator’s projected growth for 2009. ‘That increase was a surprise to us, especially such increase coming in the middle of the year,’ Makkawi said, adding: ‘Such increment was not budgeted and has to go through my budget. When any amount comes suddenly out of the budget, I have to get this money from other areas. Surely, it will affect our promotions and expansion.’ The report states that MTN Rwanda, which generates 90% of its revenue from airtime sales, will be forced to cut the additional 2% from other areas where it had planned to use it to boost penetration, introduce new products and promotions in order to boost sales.

Source: Telegeography.