Imagine buying a smartphone for as low as UGX 100,000. Yes, it will soon be possible for every Ugandan to own a smartphone with the new Government proposal to scrap off tax on smartphones. Once this proposal gets to see the light of day, this is believed to cause a ripple effect on the telecom sector.
With the new plan by the Ministry of ICT through Uganda National Information Technology Authority (NITA Uganda) Smartphones will be exempted from Value added Tax (VAT) and the excise duty which will make more affordable to the masses. For example, the Apple iPhone X which costs $1,000 now goes for around $1,400-$1,500 on Jumia due to the added tax. Many smartphones in Uganda are looked at as expensive due to the tax imposed on them during import. However, taxes on smartphones will soon be no more according NITA Uganda.
“We need to remove taxes on smartphones so that they are affordable. We want a common man in Nakapiripiriti to afford a smartphone and process his driving permit and passport without necessarily coming to government offices in Kampala.” – James Saaka, Executive director NITA-U
However much the government scraps tax on smartphones. We believe people will still cry out for further revision of data prices by Telecom operators. Just like MTN had to revise its rates again after Airtel’s new Data Blasta announcement. Various telecom operators will also have to make their rates completely affordable to all subscribers. Furthermore, this will in return increase internet usage in Uganda.
The governmnet through NITA Uganda has been on the forefront of ensuring Ugandans have affordable internet. NITA provides the national backbone infrastructure project to avail internet in various agencies and ministries and has of recent slashed data prices as more ministries and government agencies join. Public hot-spots are on the rise with NITA, Vodafone and Roke Telkom having some kind of WiFi coverage in Kampala to provide super fast internet access to the general public.
