Taxation on mobile phone usage in Kenya has become an important income earner for the government.(Briefly)

TAXATION ON MOBILE phone usage in Kenya has become an important income earner for the government. Monthly Review reports for December 2007 showed that tax revenues from mobile phones grew by 30 per cent in the year compared to 2006. Use of mobile phones accumulated airtime tax worth Ksh4.8bn in the first two months of 2007. Mobile phone airtime attracts hefty tax related charges that include a 10 per cent excise tax and 16 per cent VAT. But telecoms analysts lament that taxation drives up the cost of running a mobile phone and so limits their contribution to the economy.

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