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The directive will impact mobile operators such as Orange SA, Vodacom Group Ltd., Airtel Africa Plc, and Africell Holding SAL.
In a desperate measure to mop up revenue, the government of the Democratic Republic of Congo has ordered mobile-phone companies operating in the country to pay a levy of about $180 million a year.The directive will impact mobile operators such as Orange SA, Vodacom Group Ltd., Airtel Africa Plc, and Africell Holding SAL. These companies have reportedly received invoices for various amounts by the regulator following the introduction of levies sent by the regulator through a consultancy. All the four operators have rejected these invoices as irregular and therefore unenforceable.The levy cannot be passed onto users, they said.
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Despite being the world’s biggest producers of copper and the main source of cobalt, the country has been cash strapped due to years of corruption and mismanagement. The government is exploring various means to broaden its tax base and boost its revenue.
The Fédération Des Entreprises Du Congo, the main business association, said that it is negotiating with the government and the regulator to resolve the issue.It may be recalled that DRC last year had to cancel its plan to tax mobile operators, due to the stiff opposition from the public.
