Tanzania: SIM card levy
The Tanzanian government has proposed a SIM card levy, charged to airtime recharges. Unfortunately, it’s not clear exactly what the proposed levy is, nor how it would work. In this short presentation, RIS analyses two proposals from government in terms of its impact on the ICT sector, consumers and the wider economy. We find that focusing on increasing broadband penetration by 10% would yield USD 178.5 million, more than the tax revenues from either formulation of the SIM card tax. Either proposed SIM card tax will take money out of the sector, potentially threatening the viability of smaller operators and potentially lead to a reduction in competition and investment. You can find the presentation here.