Internet call tariff a barrier

ZAMBIA’S foreign investments in key economic sectors are currently at risk of slowing down following the introduction of the 30 ngwee tax on internet calls, says Centre for Trade Policy and Development (CTPD) researcher, Bright Chizonde.

Mr Chizonde said the internet tax would disadvantage Zambia as cost of doing business would increase and could result in lower foreign investments in many other sectors.

Mr Chizonde further said Government should maintain its role of providing a conducive environment for business growth.

On the other hand, the Zambia Information and Communication Authority should regulate the telecommunication sector to protect the interest of the mobile phone users and the economy at large. He said this in a statement yesterday made available to the Daily Nation.

“If Government wanted to get a share of what the companies get, an option would have included introducing a tax at source, not targeting an end user. Government’s role is to provide a conducive environment,” he said.

Mr Chizonde said the view that the government would save jobs by doing this was simply a misunderstanding of how business and trade operated.

He explained that job creation and security was affected by a number of key economic factors such as the level of economic activity, profitability and technological changes which led to constant structural changes in the sector. “Technological advances like internet calling should not be discouraged through taxation. Recently, we have observed an increase in banking innovations on the part of these same telecommunication companies such as the introduction of mobile money services.

“Such technological advances negatively affect the commercial banks but the banking sector has not complained. Should the government also introduce a tariff on mobile money services? Should emails also be taxed because they reduce revenues of the postal service?” Mr Chizonde asked.