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Digital inclusion and mobile sector taxation in Tanzania

SDGs Impacted

The increasing mobile phone ownership among Tanzanians has promoted digital and financial inclusion. Mobile services are creating economic activities in Tanzania. Mobile is the most effective way of extending access to ICT in Tanzania. Nevertheless, the article explains that the heavy taxation on mobile devices, subscriptions and usage could pose barrier of access

Impact / Outcome
In order to achieve Tanzania’s ambitious ICT objectives, it is crucial that the government creates an environment that enables all of Tanzania to gain access to mobile telephony and its benefits. Analysis indicates that reducing the airtime excise on all services to 10% could create an additional 1.7 million connections, while eliminating the airtime excise on data only could support one million additional 3G connections.
Funding sources
Public
Key Metrics
Mobile penetration following the removal of VAT; Usage of mobile services
Locations
Europe, Latin America, Africa, Kenya, Tanzania, Croatia, Uruguay
Sector
Financial services
Intervention levers
Regulation, Policy
Operating model
Fully public
Year published
01 January 2015
Organization involved
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GSMA

The EDISON Alliance

A World Economic Forum Initiative