Nokia asks African governments to scrap tax

Nokia has suggested Sub-Saharan governments to lower, or if possible, abolish VAT (Value Addition Tax) for mobile phones. The manufacturer believes that lower phone prices will rid countries of counterfeit phones and improve technological development.

Loren Shuster, Vice President for Sales Sub-Saharan Africa, Nokia, said that the governments would not lose any revenue as it would be returned by the usage of airtime. Shuster also said that the price-cut for manufacturers will help fighting counterfeit products and their consequences.

“Ghana has done it, and their phone industry is experiencing phenomenal growth as a result of this. We are actually opening a new office in Accra as a result of this,” said Shuster."At least 40 per cent of mobile users in the sub-Saharan region have had their first access to the internet through the mobile phone".

Shuster mentioned that research carried out by Nokia previously indicated that for each 10% increase in mobile usage, there was a resultant 0.5% growth in the Gross Domestic Product of a country.

[via Capital FM via IT News Africa]