Jamani Tigo, Celtel, Zantel na nyie lalamikeni mbona Vodacom wamepewa 10 yr Tax holiday?? How come??? Who authorized this??
MP faults Vodacoms tax holidays
Dailynews Reporter
Daily News; Wednesday,June 25, 2008 @08:13
THE Legislator for Gando(CUF), Mr Khalifa Suleiman Khalifa, has questioned the criteria used and basis for granting a mobile phone company, Vodacom Tanzania Limited, tax holiday of 10 years.
Debating the Prime Minister's Office 2008/09 budget estimates, Mr Khalifa said by exempting the company from income and corporate tax the government was losing billions of shillings.
He told the House that when it started operations the company was granted a tax holiday of five years and that it received an extension of another five years upon the expiry of the earlier term. The MP said it was estimated that the company which was paying between 6bn/- and 8bn/- in Value Added Tax a month had an annual turnover of over 350bn/-. "That means this company collects over 300bn/- a year and yet does not pay tax," he said.
Mr Khalifa wanted to know who made that decision and why on that particular company while there were four other firms that provided mobile phone services in the country.
He said since tax being one of the main sources of the government's revenue the move was detrimental to the country's economy and national development.
Worse still, he said mobile phone tariffs remained high among all companies making Tanzania the second country in the world with exorbitant rates after Turkey.