Topic: Accusations against mobile phone companies shocking

Accusations against mobile phone companies shocking

By Editor

9th June 2012

The revelation last week by Communications, Science and Technology deputy minister January Makamba, in his article published by our sister newspaper, The Guardian on Sunday, as a commentary on an opinion published two weeks ago, is both shocking and appalling.

The minister, in his article, claimed to have authentic and reliable data from the regulator, Tanzania Communications Regulatory Authority (TCRA), to back his claims that mobile phone companies have been evading paying taxes for some years now—thanks to a lack of technology to detect their actual revenues.

According to the minister, in the year 2010 mobile phone companies in Tanzania earned $1 billion (Sh1.6trillion), but paid only $1.7 million (Sh2.7 billion) in taxes. But, during the same period, Kenya earned $78.3 million from mobile phone companies, Uganda made $31.3 million while Rwanda collected $14 million nearly ten times what the Tanzania government earned.

If this is the situation, then the public has the right to know why mobile phone service providers are shortchanging the government in paying tax while making trillions of shillings? One would rightly go further and demand to know what measures the government and the Tanzania Revenue Authority have taken to recover the unpaid taxes.

Cellphone service firms are supposed to pay Value Added Tax (VAT) and Corporation Tax for those which have made a profit, plus other taxes as stipulated by the country’s laws. It’s therefore appalling to note that Kenya collected fifty times what Tanzania did from mobile phone companies as taxes in 2010.

As the deputy minister put it, “Surely, you could argue that Kenya’s economy is bigger than ours, but Rwanda - a much smaller economy compared to ours and with only two mobile companies - collected more than what Tanzania earned.”

When you consider that the total number of mobile phone subscribers in Tanzania is far bigger than the population of Rwanda, which has about 11.5 million people, it is an insult to our intelligence to make us believe the country could collect more taxes from the mobile phone service subsector than we did.

It is estimated that Tanzania has about 15 million mobile phone subscribers, though some statistics show that the number could actually be closer to 20 million.

This, coupled with the fact that there are seven (not two) telecom companies operating in the country, namely Vodacom, Airtel, Tigo, Zantel, TTCL, Sasatel and Benson Informatics, it is pretty obvious that the government is getting a raw deal from the firms in terms of tax revenue.
The number of Rwanda’s total mobile users was 4.4 million by February, this year, barely a fifth of the number of users in Tanzania, but still garnered more taxes from its mobile phone operators than Tanzania.

Something must be seriously wrong somewhere – which calls for urgent and effective measures to curb this massive tax evasion in the mobile industry. It defies logic and morally rubs the wrong way for anybody who earns $1 billion to pay the government peanuts in taxes.

It might be a tax paradox to some people, but to us it’s just another one of those fishy deals which have been rocking this country for so many years. The public demands full explanation from TRA about why mobile companies have been taking the government for a ride when it comes to tax payment.

To be fair to all, including the mobile phone companies, we call upon the government to form a special committee to investigate these allegations so that, at the end of the day, fairness and justice is done.

The industry should be thoroughly investigated by an independent body, formed either by the government or the National Assembly, in order to establish the truth about the tax dues from these companies.



SOURCE: THE GUARDIAN

By BAK

Accusations against mobile phone companies shocking

By Editor

9th June 2012

The revelation last week by Communications, Science and Technology deputy minister January Makamba, in his article published by our sister newspaper, The Guardian on Sunday, as a commentary on an opinion published two weeks ago, is both shocking and appalling.

The minister, in his article, claimed to have authentic and reliable data from the regulator, Tanzania Communications Regulatory Authority (TCRA), to back his claims that mobile phone companies have been evading paying taxes for some years now—thanks to a lack of technology to detect their actual revenues.

According to the minister, in the year 2010 mobile phone companies in Tanzania earned $1 billion (Sh1.6trillion), but paid only $1.7 million (Sh2.7 billion) in taxes. But, during the same period, Kenya earned $78.3 million from mobile phone companies, Uganda made $31.3 million while Rwanda collected $14 million nearly ten times what the Tanzania government earned.

If this is the situation, then the public has the right to know why mobile phone service providers are shortchanging the government in paying tax while making trillions of shillings? One would rightly go further and demand to know what measures the government and the Tanzania Revenue Authority have taken to recover the unpaid taxes.

Cellphone service firms are supposed to pay Value Added Tax (VAT) and Corporation Tax for those which have made a profit, plus other taxes as stipulated by the country’s laws. It’s therefore appalling to note that Kenya collected fifty times what Tanzania did from mobile phone companies as taxes in 2010.

As the deputy minister put it, “Surely, you could argue that Kenya’s economy is bigger than ours, but Rwanda - a much smaller economy compared to ours and with only two mobile companies - collected more than what Tanzania earned.”

When you consider that the total number of mobile phone subscribers in Tanzania is far bigger than the population of Rwanda, which has about 11.5 million people, it is an insult to our intelligence to make us believe the country could collect more taxes from the mobile phone service subsector than we did.

It is estimated that Tanzania has about 15 million mobile phone subscribers, though some statistics show that the number could actually be closer to 20 million.

This, coupled with the fact that there are seven (not two) telecom companies operating in the country, namely Vodacom, Airtel, Tigo, Zantel, TTCL, Sasatel and Benson Informatics, it is pretty obvious that the government is getting a raw deal from the firms in terms of tax revenue.
The number of Rwanda’s total mobile users was 4.4 million by February, this year, barely a fifth of the number of users in Tanzania, but still garnered more taxes from its mobile phone operators than Tanzania.

Something must be seriously wrong somewhere – which calls for urgent and effective measures to curb this massive tax evasion in the mobile industry. It defies logic and morally rubs the wrong way for anybody who earns $1 billion to pay the government peanuts in taxes.

It might be a tax paradox to some people, but to us it’s just another one of those fishy deals which have been rocking this country for so many years. The public demands full explanation from TRA about why mobile companies have been taking the government for a ride when it comes to tax payment.

To be fair to all, including the mobile phone companies, we call upon the government to form a special committee to investigate these allegations so that, at the end of the day, fairness and justice is done.

The industry should be thoroughly investigated by an independent body, formed either by the government or the National Assembly, in order to establish the truth about the tax dues from these companies.



SOURCE: THE GUARDIAN

Wizi mkubwa, hii nchi ni uwanja wa kujifunzia kuiba hadharani. Naamini waziri mhusika atalishughulikia hili swala.

By transcend

Wizi mkubwa, hii nchi ni uwanja wa kujifunzia kuiba hadharani. Naamini waziri mhusika atalishughulikia hili swala.

Siku chache zilizopita TCRA walitoa tangazo la tender kwenywe magazeti, wanataka kufunga kifaa cha ku-monitor simu kwenye haya makampuni. Kama hawatazuiliwa basi kodi itapatikana lakini ccm na ufisadi tusishngae mchakato wa kufunga hicho kifaa ukachukua miaka 10 au kufutwa kabisa.

[QUOTE=Ngambo Ngali;4026896]BAK, I am at a loss. Why the hell should he publish the revelation in the newspaper?

Has he forgotten that he is the deputy Minister?

Or maybe he doesnt know the scope of his duties.[/QUOTEp
He published in the newspaper ili watanzania na umma kwa ujumla wake wajue nchi yetu ilipo, na madudu inayofanya. As a deputy minister amethubutu kufanya jambo ambalo hakuna mwingine ambaye angelifanya au ameshawahi kulifanya. Good boy! hapa makamanda watapata la kusema katika bunge la bajeti hii.
Angekuwa mwingine au wewe pia ungevuta kwa hao wenye makampuni. Hivi unadhani TRA hawajui? Usalama wa Taifa wanaofanya kazi TRA na kwenye hayo makampuni unadhan hawajui hayo?????????????????????????? ??????? Uchumi wetu wanaulindaje?
Mimi naona umekurupuka na pampas kabla hujaibadilisha ndio ukaandika huo upuuzi hapo juu. Ulikuwa unataka akae kimya ili iweje? Bungeni hawezi kuchangia kwani yeye ni serikali, kwenye vikao vya baraza la mawaziri haiingii, ulitaka nini???????
Kweli Tanzania ni zaidi ya uijuavyo.

By mwandiga

He published in the newspaper ili watanzania na umma kwa ujumla wake wajue nchi yetu ilipo, na madudu inayofanya. As a deputy minister amethubutu kufanya jambo ambalo hakuna mwingine ambaye angelifanya au ameshawahi kulifanya. Good boy! hapa makamanda watapata la kusema katika bunge la bajeti hii.
Angekuwa mwingine au wewe pia ungevuta kwa hao wenye makampuni. Hivi unadhani TRA hawajui? Usalama wa Taifa wanaofanya kazi TRA na kwenye hayo makampuni unadhan hawajui hayo?????????????????????????? ??????? Uchumi wetu wanaulindaje?
Mimi naona umekurupuka na pampas kabla hujaibadilisha ndio ukaandika huo upuuzi hapo juu. Ulikuwa unataka akae kimya ili iweje? Bungeni hawezi kuchangia kwani yeye ni serikali, kwenye vikao vya baraza la mawaziri haiingii, ulitaka nini???????
Kweli Tanzania ni zaidi ya uijuavyo.

Mwandiga,
Hunijui na mimi sikujui, hivyo hakukuwa na sababu ya kunitukana. Ulichotakiwa kufanya ni kutoa hoja kupinga hoja zangu, kama ambavyo wengine walivyofanya. Hoja hujibiwa na hoja, hoja haijibiwi na matusi au ngumi ukishafika huko ni kiashiria tosha kuwa hoja ya kukinza hoja ya mwenzio.

Zingatia, humu ndani tumepishana sana umri hivyo heshima na staha ni kitu muhimu sana, Kama huwezi kuwa na breki katika mawazo yako sio lazima uandike, kaa kimya utaonekana mwenye busara sana. Kama wewe unalala na pampers wengine hata watoto wetu hawakulala na pampers. Matusi na utani Peleka kwa watoto wenzio.

Tukirudi kwenye hoja zako, unasema ameandika ili umma na watanzania wajue, swali linakuja umma na watanzania tukijua itakuwa Nini mwisho wa siku? Sisi hata tukijua hakuna kitu ambacho tunaweza kufanya. Mwajiri wake ambaye alimteua Ndio mwenye uwezo juu ya taasisi zote zinazoweza kushughulikia mambo hayo, wananchi hawawezi kufanya chochote.

Amethubutu kufanya kitu amabacho hakuna aliyefanya, hii hoja haina nguvu kabisa, wengine wote hawajafanya kwa sababu sio sehemu ya kazi wa waziri kulalamika gazetini, waziri ni msaidizi wa raisi angeenda kwa raisi kumwambia Kama ambavyo wengine wote wamekua wakifanya. Kosa moja la huyu bwana usitake liwe precedent kwa Mawaziri na manaaibu waziri wasiojua utaratibu wa kazi.

Ina maana kwa sababu hachangii bungeni na kwa sababu haingii kwenye Baraza la mawaziri basi kila kitu aseme ili " WATANZANIA WAMSIKIE". Kwa hiyo tatizo lako ni kuwa umma umsikie!!!!!!!

Sasa umeeleweka, suala ni PUBLICITY STINT na sio uchungu wa nchi.

By mwandiga

He published in the newspaper ili watanzania na umma kwa ujumla wake wajue nchi yetu ilipo, na madudu inayofanya. As a deputy minister amethubutu kufanya jambo ambalo hakuna mwingine ambaye angelifanya au ameshawahi kulifanya. Good boy! hapa makamanda watapata la kusema katika bunge la bajeti hii.
Angekuwa mwingine au wewe pia ungevuta kwa hao wenye makampuni. Hivi unadhani TRA hawajui? Usalama wa Taifa wanaofanya kazi TRA na kwenye hayo makampuni unadhan hawajui hayo?????????????????????????? ??????? Uchumi wetu wanaulindaje?
Mimi naona umekurupuka na pampas kabla hujaibadilisha ndio ukaandika huo upuuzi hapo juu. Ulikuwa unataka akae kimya ili iweje? Bungeni hawezi kuchangia kwani yeye ni serikali, kwenye vikao vya baraza la mawaziri haiingii, ulitaka nini??????? Kweli Tanzania ni zaidi ya uijuavyo.

mwandiga, ninatofuatiana na wewe sana, hasa pale unaposema kuwa naibu waziri kaandika ili watanzania wajue! Sijui umekuwa unafuatilia hii topic ya telecom firms kwa muda gani? Hapa JF kwenyewe watu wameandika sana tena sana kuhusu wizi unaofanyika. Bungeni nako wabunge wamepiga kelele sana kuhusu ukwepaji wa kodi. Tafuta Hansard za bunge utakuta michango toka kwa Zungu, Zitto etc. Hakuna jipya aliloandika hapa huyu naibu waziri zaidi ya ku-compile notes za watu mbalimbali.

But Naibu waziri yuko serikalini, yuko kwenye executive branch, kazi yake anatakiwa kuandaa sera na kuzitekeleza, he is supposed to 'execute' na sio kujigeuza mwanahabari. Yeye ni naibu waziri for god sake! Soma vizuri article yake anasema ana "authontic and reliable data" toka TCRA. Sasa kama na data za uhakika wajibu wake ni kuandika makala kwenye magezeti? Yeye ni publicity au ni part of the executive branch?

Haya, tukubali hoja yako kwa ameandika ili "watanzania na umma kwa ujumla wake wajue nchi yetu ilipo, na madudu inayofanya", Watanzania wakishajua then what? Hivi ni kweli watanzania hawajui hicho alichosema kwenye article yake? (refer hansard za bunge). List ya walipa kodi - top 15 for the last 5 years imekuwa inajadiliwa hapa jamvini since last July, sasa leo kuna nini jipya? amegundua what?

Kuhusu huu ukwepaji kodi TCRA wametangaza tenda kwa makampuni yenye uwezo wa kufunga kifaa ili waweze com-monitor upigaji simu toka kwa haya makampuni. Naibu waziri anatakiwa kusimamia hilo haraka ili nchi isiendelee kupoteza mapato. Na huo muda anaotumia kuandika makala kama PR angeutumia kuwasiliana na office ya mwanasheria mkuu ili hizo "authentic and reliable data" kuhusu ukwepaji wa kodi zipitiwe na kuandaa kesi ya kuliibia taifa. Hayo ndiyo mambo nategemea toka kwa waziri/naibu waziri yoyote na sio makala. Mambo ya makala Kubenea anafanya vizuri sana.

Presidency may be!

By Ngambo Ngali

A company under his ministry and he writes a commentary in the newspaper, is that perform his duties. What is it that he wants to achieve?

Publicity stint?

For what reason?

Shame,how come VODACOM miss out in list?! Hata Bakhresa hayupo? Now we real real need a new system with new people and ofcourse new party.

By Mwanaukweli

Nilishangaa kati ya walipa kodi wakubwa 15 mwaka jana ni Airtel tu walikuwemo!

Hawa hapa ndio walipa kodi wakubwa Tanzania

1. Tanzania Breweries Ltd. (Shilingi Bilioni 165.4);
2. National Microfinance Bank (Shilingi Bilioni 108.6);
3. Tanzania Cigarette Company (Shilingi Bilioni 92.1);
4. National Bank of Commerce (Shilingi Bilioni 89.9);
5. CRDB Bank Ltd. (Shilingi Bilioni 79.2);
6. Tanzania Ports Authority (Shilingi Bilioni 76.8);
7. Tanzania Portland Cement (Shilingi Bilioni 73.4);
8. Airtel (T) Ltd. (Shilingi Bilioni 63.6);
9. Tanga Cement Company Ltd. (Shilingi Bilioni 43.6);
10. Standard Chartered Bank Ltd. (Shilingi Bilioni 40.0);
11. Citibank (T) Ltd. (Shilingi Bilioni 35.7);
12. Resolute (T) Ltd. (Shilingi Bilioni 32.1);
13. Tanzania International Container Terminal Services (Shilingi Bilioni 25.9);
14. Tanzania Distillers Ltd. (Shilingi Bilioni 13.4); na
15. Group Five International (PTY) Ltd. (Shilingi Bilioni 9.5).

Ni mgodi mmoja tu wa dhahabu, na ni kampuni moja tu ya simu za mikononi imo katika list hii. Very interesting.

Inashangaza kuwa vigogo wa biashara nchini kama MeTL, Bakhresa/Azam, IPP, VodaCom, Coca cola, Pepsi(SABCO), Serengeti Breweries, Barrick Gold, AngloGold Ashanti.

Tulitegemea pia tuone kampuni za mafuta kama oilcom, bp, nk.

Source: Hotuba ya Waziri Mkuu 26.08.2011

By Ngambo Ngali

BAK, I am at a loss. Why the hell should he publish the revelation in the newspaper?

Has he forgotten that he is the deputy Minister?

Or maybe he doesnt know the scope of his duties.

it seems you are either a direct benefactor of these companies or you are the one who signed these silly agreements.what the Depute did is to try let the public know what is happening in these mobile phone companies and in fact to be the depute minister does not mean is robbed his freedom of speech.

It does not add up. The list given here of major taxpayers states that Airtel paid shillings 63 billion in taxes last year. How can that square with the ministerial claim that all mobile phone companies together paid only shillings 2.7 billion?

If a single company paid 63 bill/- last year but all companies together paid only 2.7 bill/- the year before, then they are stealing us blind. No wonder they all want to have CCM bigwigs on their boards!

Sasa Chadema wakichukuwa Nchi wakianza kukusanya Kodi kwa Umakini ndio tutaanza kuona maendeleo ya ajabu sasa kwanini bei ya Cement na bati isishuke kama kodi yote itakuwa inakusanywa hilo ndio jibu la slaa

The deputy Minister should take the mobile phone to task through TCRA.What did he want to achieve by publishing the article anyway. He should take action and publish the results of his action and not complain about them phone company

By Ngambo Ngali

First and foremost we are not his employers. We did not employ him it is the President who employed him to assisst him in all sectorial issues in the communication, science and technology. In which case therefore I don't think that by putting up that revelation in the newspaper is part of assisting the President.

Ok, as rightly put, we Tanzanians have known, will it stop them from doing whatever mischievous deeds they are doing, I think no.

He should go and tell the president of what he has learnt and the measures he has taken or at least those he intends to take, what he has done will not solve the problem facing the nation in any way.

NN,

I agree with you! Blowing this mess in this way was supposed to be from Opposition, blowing to the public, and let the government investigate or taking action. I expected more from him, like proposing stern action to the president to make sure TRA is going extra miles in Tax collection!

To me with this, its more like seeking attention from the public!! Shiiit...

Hili nilitegeea TRA to audit the books on the next day, sunctions and penalties to be laid upon on the next week. Where are the applicable INCOME TAX ACT 2004, as revised?. Haya mambo twayasoma tu vyuoni ila TAX commissioners have no say on it.

NIKUSHANGAZE? Ni nani alishapata TRA receipt (VAT) kutoka HOME SHOPPING CENTRE? Huu pia ni myanya wa hayo wayafanyayo makampuni ya simu. Au they are not registered for VAT, I mean return ni below 40MIL per annual? Wako wengi nhapo sijagusa wanaomiliki vitabu vi3 vya risiti.....

Ours is the country where everyone has at least one person to put blame upon. Look how it goes: MPs blame ministers for performance inefficiency and funds embezzlement, ministers blame the opposition for becoming too faultfinding, the opposition blames the president for carefreeness, the president blames God for scarcity of rain and the consequent paucity of water in TANESCO dams. The newly appointed January now joins an endless list of faultfinders by hitting out at telecommunication firms. If our leaders devoted the enormous amount of calories they waste on inventing allegations and building criticism to seriously working hard for the profit of the nation, this country would really be on a par with the likes of Botswana and Rwanda.

But this is not NEW! Some MPs have been talking about this issue for a while. TCRA is acting so slowly and TRA is not even interested (maybe it is!). My expectation is that MPs will refuse to approve next year's budget for Communications, Science and Technology Ministry if it doesn't come with bold measures to address the issue. And measures to be taken are straightforward: (i) immediately install telecommunication traffic monitoring system (if there is one, it's not doing what is supposed to be done) and (ii) compute/estimate all unpaid tax (since the start of operation) + penalty and make the tax evading mobile companies pay. (iii) issue an ultimatum that if anyone gets caught evading tax again, the licenses will be automatically revoked, no matter the consequences. Send all respopnsible to jail.

By Mwanaukweli

Nilishangaa kati ya walipa kodi wakubwa 15 mwaka jana ni Airtel tu walikuwemo!

1. Tanzania Breweries Ltd. (Shilingi Bilioni 165.4);
2. National Microfinance Bank (Shilingi Bilioni 108.6);
3. Tanzania Cigarette Company (Shilingi Bilioni 92.1);
4. National Bank of Commerce (Shilingi Bilioni 89.9);
5. CRDB Bank Ltd. (Shilingi Bilioni 79.2);
6. Tanzania Ports Authority (Shilingi Bilioni 76.8);
7. Tanzania Portland Cement (Shilingi Bilioni 73.4);
8. Airtel (T) Ltd. (Shilingi Bilioni 63.6);
9. Tanga Cement Company Ltd. (Shilingi Bilioni 43.6);
10. Standard Chartered Bank Ltd. (Shilingi Bilioni 40.0);
11. Citibank (T) Ltd. (Shilingi Bilioni 35.7);
12. Resolute (T) Ltd. (Shilingi Bilioni 32.1);
13. Tanzania International Container Terminal Services (Shilingi Bilioni 25.9);
14. Tanzania Distillers Ltd. (Shilingi Bilioni 13.4); na
15. Group Five International (PTY) Ltd. (Shilingi Bilioni 9.5).
Hotuba ya Waziri Mkuu 26.08.2011

Mnashangaa nini GGM Geita Gold Mine ni mgodi mkubwa kuliko migodi yote Tanzania na pia ni mgondi wa NNE kwa ukubwa Afrika lakini haumo kwenye orodha ya walipa kodi wakubwa.

Resolute Tanzania (L) ni mgodi wa pili wa dhahabu kwa udogo after Tulawaka, lakini wame kwenye orodha ya walipa kodi wakubwa, migodi mikubwa kama North Mara aka Nyamongo, Bulyahulu aka Kakola, Buzwagi etc hawamo katika walipa kodi wakubwa.

ONLY mpumbavu atasema kwamba Tanzania ni nchi masikini. Ukweli ni kwamba Tanzania ni nchi masikini kwasababu viongozi wetu wa CCM wanataka sisi tuwe masikini. Lakini leo wakisema hawataki Watanzania tuwe masikini sisi SIO masikini Jamani.

Somebody said somewhere hii ni nchi ya kitu kidogo, was he or she right or wrong? it is for you to digest.

Makamba is right for blowing the whisle regarding the matter so that the public is aware of what is going on. ila kwa sababu serikali yetu pamoja na TRA wamelala pamoja na kupewa peanuts amount kutoka kwa makampuni ya simu huku wakiingizia taifa hasara kubwa, watanyamaza kimya kama kawaida yao
HII NCHI INAHITAJI KUKOMBOLEWA JAMANI NA WATU WA KUIKOMBOA NI SISI VIJANA. TUHAMASISHANE SISI KWA SISI TUIKATAE CCM MCHANA KWEUPE NA TUJIANDIKISHE KWA WINGI KUPIGA KURA 2015 KUWAANGUSHA KUPE WA RASILIMALI ZETU.
THE FREEDOM IS COOOOOOOMING!!!!!!!!!!!!!!!!!! !!!!!

Tanzania is a country where everybody complains about problems the country is facing...everybody complains but nobody takes action....starting from the president....his ministers.....and all Tanzanians....What is left of Tanzanians is for everybody to just take care of his/her own problems....What you all fail to understand is that these government ministers take 10% from these very telecom companies (just as they do with mining companies)...so don't expect action from them...you will always end up seeing them complaining in the media (e.g news papers or TV)..just to fool Tanzanians that they are doing something.....very sad....

Jamani, Mwl once said, a corrupt government does not collect tax. this gvnt has never been serious. it appriciates begging.

the boy- i mean the minister is still naive in the area, you will soon hear him no more. the big fish never pay tax here, only poor civil servants on this land, pay high taxes, as well as the machinga.

what should we do?