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Burundians to protest new tax levied on calling tariffs

Saturday March 28 2015
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Telcos in Burundi have protested the recently introduced telephone call tax, saying it will slow down efforts to join the East Africa One Network Area. PHOTO | TEA GRAPHIC |

Telephone companies in Burundi have protested against the recently introduced telephone call tax, saying it will slow down the country’s efforts to join the East Africa One Network Area.

Heads of state of the five East African Community members agreed during a Summit in Nairobi last month that the region would become a One Network Area by July this year. Kenya, Rwanda and Uganda harmonised their calling rates in November last year and have reported an increase in telecommunication traffic.

The new telephone call tax of BIF42 (3 US cents) was introduced to replace VAT and has doubled local mobile call rates. The Ministry of Finance, however, released a statement earlier this year, saying the cost of the phone calls should not increase because of the tax.

Civil society organisations have called on the citizens to press for the removal of the tax through peaceful demonstrations.

“The president has failed to respond to our demands. There is too much poverty and people are desperate because of the high cost of living caused by the new tax and fuel shortage,” said Gabriel Rufyiri, chairman of the observatory for the fight against corruption.

Mr Rufyiri said traders would be asked not to open their businesses during the protest.

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Telecommunication operators in Burundi hope to negotiate with the government to resolve the row. Econet Wireless of Zimbabwe now controls 80 per cent of the market after buying out Telecel (Leo), Burundi’s largest mobile telephone operator, in a $ 65 million deal that included Leo’s Central Africa Republic assets.

The Burundi Telecommunication Regulatory and Control Agency last year closed down Tempo Africell after it failed pay licence fee.

Kenya, Uganda and Rwanda have already reduced calls by 12 US cents per minute for national calls with no charges for incoming calls since the One Network Area was implemented last year.

The One Network Area agreement has reduced the charges for making and receiving calls between other countries in East Africa by 60 per cent through reduced tariffs for calling on different networks.

READ: Mobile traffic up as One Network Area comes into effect

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