The Center for Trade Policy and Development (CTPD) says the 30 Ngwee Internet Tax that was recently introduced by the government is Misguided and should be reversed.

On the 12th of August, 2018, the Zambian government held a cabinet meeting at which a collective decision was made to introduce a 30-ngwee per day tariff on internet calls with a view that the increase in internet calls threatens the telecommunications industry and jobs in companies such as Zamtel, Airtel and MTN.

Chief Government Spokesperson Dora Siliya stated in a follow up press statement that “a research showed that 80 percent of the citizens are using WhatsApp, Skype and Viber to make phone calls.”

CTPD Researcher Bright Chizonde says the center considers the cited research and figure to be erroneous and very misleading.

Mr. Chizonde says according to the 2015 ZICTA ICT Survey report, about 51 percent of people aged above 10 years in Zambia are active users of mobile phones and that of this, less than 13.5 percent of the users have smart-phones.

He says the minimal number of people using this service can therefore not justify the Issuing of and SI seeking to impose a tariff on internet calling.

“The view that government would save jobs by doing this is simply a misunderstanding of how business and trade operates”, he has added.

“Government should maintain its role of providing a conducive environment for business growth, and regulation of the sector should be done through ZICTA in order to protect the interest of the mobile phone users and the economy at large.”

Mr. Chizonde has told Money FM News that his organization is of the view that the 30-Ngwee tariff will only add to increasing the cost of communication and business in the country relative to its neighboring countries.

He says this will disadvantage Zambia by increasing the cost of doing business and may result in lower foreign investments in many other sectors.

He notes that 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.