Econet calls for less tax on mobile equipment in Zimbabwe


strive.jpgZimbabwe’s largest mobile network provider, Econet, has called on the government to reduce taxes on goods like handsets and generators, saying this would assist in reviving the Information and Communications Technology (ICT) industry in the country.

It also urged the newly-formed Ministry of ICT to help players in the industry to set up additional base stations in the country, creating a greater footprint for mobile coverage.

Says Isaac Chaza, a senior official at Econet: “The ministry (of ICTS) needs to assist us lobby for land to setup base stations. The process might take long while during that period equipment will be lying idle. It should also advocate removal of taxes levied on handsets, generators and other technical tools.”

The Zimbabwe government imposes duty on such equipment, a move the industry had previously labeled as damaging to the growth of the industry.

Telecom companies in Zimbabwe were recently given permission to charge customers in foreign currency to enhance profitability, in the face of runaway inflation and local currency devaluation in the Southern African country.