TechInAfrica – The African telecommunication provider, Safaricom informed their prices review of various data services as an impact of finance law on Finance Act of 2018.
According to the Finance Act 2018, excise duty tax on voice, SMS, and Data Service have been increased to 15% while it was 10% previously. The increase is on top of the VAT applicable to the mobile services that are at 16%.
Due to the change, Safaricom made an announcement that starting from midnight of October 18, safar2018, they would increase their voice call services’ price by 30 cents while SMS by 10 cents.
Safaricom, furthermore also has reviewed their prices for data bundles and Fiber-to-the-Building (FTTB) and Fiber-to-the-Home (FTTH) that is 15% excise duty tax on Internet services. The new price claimed by the company has been filed with the Communications Authority of Kenya as it is required by the finance law.
According to the company in the release: “We are aware of and regret the impact these additional taxes on our customers. It is our sincere hope that these changes will not affect the remarkable gains we have made in mobile phone and Internet penetration in Kenya over the last two decades.”
Speaking of the telecommunication company, Safaricom, it is one of the largest telecoms networks in Kenya with a market share of more than 67% according to the most recent Communications Authority of Kenya statistics. The new change of tariff will bring impact on Kenyans, especial those with the fiber connections in their houses and business. Judging from the increase, 15% is a big amount, thus, it is indeed impactful.