Business Briefs

Zimbabwean telecom companies say tax burden too heavy

MOBILE network operators in Zimbabwe are calling on the government to reduce their tax burden.

IT Web cites Econet Wireless deputy executive officer Roy Chimanikire as saying that the firm currently pays a 5% health levy, 15% VAT, 25% corporate tax, 3% universal service fee and 2% IMT tax.

In its financial year to end-February 2021 Econet paid ZWL12.2 billion (USD34 million) in taxes, equivalent to one-third of its total revenues and more than 14 times its net profit.

Chimanikire said he believes that the burden on telecoms providers is high when compared to other industries and is calling on the government to reduce or remove some of the levies.

Last week, Angeline Vere, CEO of state-backed mobile operator Telecel, also called on authorities to open talks on the issue of over-taxation.

Zimbabwe continues to struggle with high inflation, a liquidity crunch, power outages and low consumer demand.

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