Firm pays 18bn/- tax in Q1

Vodacom Tanzania paid Sh18 billion in corporate tax in the first quarter of its 2013/2014 financial year, which runs from 1 April to 31 March, the mobile firm said in a statement yesterday.

In addition to the corporate tax payment, the company also paid Sh50.69 billion in various taxes and levies, according to Vodacom Tanzania managing director, Rene Meza.

“These include: excise duty Sh13.1 billion, Vat Sh24.02 billion, withholding tax Sh1.6 billion and Paye Sh4.17 billion which we collected on behalf of the government over the same period,” he said.

Other charges and fees are: regulatory fees Sh1.1 billion, USCAF levy Sh407 million, city service levy Sh663 million, municipal advertising tax Sh563 million, gaming board fees Sh397 million, SDL Sh911 milion, stamp duty Sh239,302, skills and development levy Sh911 million and social security contributions of Sh1.3 billion.

“We are able to make significant contributions to the government revenue because we have begun to see the return on investment in the business to date. 

"We are however, very concerned by the increased tax burden on the sector as this may impact our customers’ ability to pay for mobile communication services which have over the years become increasingly affordable for all,” said Mr Meza.

He added that while Vodacom understands the government’s need to collect revenue for development initiatives, the increased consumer tax on mobile communication services will result in lower corporate tax payments due to a decrease in customer spending.

Last year Vodacom paid Sh36 billion in Corporate Tax. It also collected Sh92 billion as VAT, Sh51 billion as excise duty and Sh4 billion as withholding tax on behalf of the government.

In 2013/2014, Mr Meza said they plan to invest over Sh207 billion in network expansion and quality.

“We’re committed to ensuring that more Tanzanians have access to our services. Vodacom has invested in excess of Sh1.3 trilion in the country since it began its operations.”

Mr Meza further said Vodacom Tanzania was proud of its engagement in social welfare through its corporate social responsibility.

In 2012, the company’s Vodacom Foundation spentSh11 billion on health, education and economic empowerment initiatives in the country. 

The Foundation has supported over 120 projects to date, ranging from fundraising for the awareness and eradication of fistula in Tanzania, the provision of teaching facilities to schools, the economic empowerment of women in rural areas to the provision of water to communities in semi-arid areas.
Source: The Citizen, reported from Dar es Salaam, Tanzania
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