Why Netflix users face higher prices in Rwanda

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A Netflix subscriber opening the movie stream application on a mobile phone. PHOTO | AFP

The cost of the video-on-demand service Netflix will go up in Rwanda when the government implements the Digital Service Tax, in line with its goal of raising more domestic revenue to finance its expanded budget.

The Rwanda Revenue Authority (RRA) is seeking to levy a 1.5 percent tax on both local and foreign digital service providers, including Netflix and Amazon, at a time when Rwandans, especially the urban youth, are increasingly consuming digital services through their smart gadgets.