[kictanet] Kenyan Ministry Joins Push for Telcoms Tax Cuts

[alice]

KenyaN Ministry Joins Push for Telcoms Tax Cuts

The ministry of Information and Communications is backing efforts by 
mobile companies to have taxes levied on the industry reduced. peaking 
during the ITU's

Forum on Telecommunications Regulation in Africa, Information and 
Communication Minister, Mutahi Kagwe, said there is need for a tax cut.

"I think there is a case for it. But of course, you have to balance the 
need for the reduction and the Government's need for revenue," he said.

The forum, hosted by the Communication Commission of Kenya (CCK) and 
attended by other Africa regulators, was convened to discuss ways of 
raising access to telecommunication services, by making it possible for 
service providers to share network and other common infrastructure. 
obile telephone operators want tax on mobile calls reduced and excise 
duty removed.

"I am negotiating with my colleague in Treasury to see what can be 
reduced," he said, but declined to disclose whether the pleas will be 
factored in this year's budget. That, I will leave to the minister 
(Finance) but I hope he will consider the proposal," Mr Kagwe said.

The idea to encourage sharing of infrastructure is borne out of the 
realisation that it could lower entry costs for new companies to 
participate in the telecommunication industry, increasing competition 
and lowering access costs to users. Infrastructure sharing holds 
tremendous promise for Africa, where investment in ICT development is 
yet to match market demand," CCK Director-General John Waweru said. he 
commission, he disclosed, is in the process of developing a framework to 
facilitate harmonious infrastructure sharing, and will be out in three 
weeks.

(SOURCE: The Nation )