Tanzania Internet Service Providers Association (TISPA) and our members would like to express our dissatisfaction on the levied move of enforcing 14.5% excise duty on internet services. Below is our expert analysis of the adverse impacts of this newly imposed 14.5% excise duty to the public.
- The Imposed 14.5% excise duty from 0% is too high for the government to slap on the public. The above duty is in addition to the prevailing 18% Value Added Tax (VAT) already borne by end consumers of internet service.
- Will inflate the cost of internet and data services making Tanzanians the Highest Taxedsubscribers in Sub-Saharan Africa.
- The 14.5% Excise Duty would negate the gains so far made on internet and data penetration in Tanzania.
- Will reduce the consumption of internet and internet service penetration.
- Will slow down our members’ ability to roll out internet in rural areas.
- Will get in the way of Millennium Development Goals of alleviating poverty through the use of ICT where internet plays a major role.
- Internet development especially in the rural area would immensely be impacted by the 14.5% imposed excise duty.
- Internet would be expensive limiting schools and colleges to access these services
It is our belief that this new imposed excise duty will widen the digital divide defeating the purpose of nationwide reach, to champion and create initiatives for internet access expansion in the uneconomic areas by the Tanzania Internet Service Providers. We urge the government to heed to our plea so that we can achieve our ICT4Development goals for the country and not by making internet more expensive to the public.
Tanzania Internet Service Providers Association (TISPA) is a non-profit association with the purpose to bring together the Internet community to collectively make the Internet accessible to as many people as possible by encouraging the proliferation of the sector, and have their effects be as positive as possible to the users and the country in general.