New SMS, Data, Internet Tax A Need For Quality Service Says CAMA

As debate on the imposed 10% tax for SMS, Data and Internet, continue being criticized as ‘retrogressive’, the Consumers Association of Malawi (CAMA) eyes beyond the tax.

Gondwe: anunced the tax increment 

Minister of Finance when presenting the Budget statement in the National Assembly, announced the tax increase on SMS, data and internet. Hon Goodall Gondwe argued that Malawians have now access to communication mobile devices at a fordable rates hence imposing 10% tax would be a rights source for government revenue.



However, the decision has been heavily criticised as people still feel Malawi has one of the most expensive mobile communication services whose services are poor.

CAMA says this is also a moment to highlight the need for proper frameworks and legislations for MACRA in the regulation of mobile service providers to improve their services. 

John Kapito

CAMA Executive Director Mr. John Kapito agrees that the new tax on mobile services adds insult to a wound, as already mobile services reap Malawians with high priced poor services. 

But Kapito highlighted that people (ICT Consumers) should now push that Malawi Communication Regulatory Authority (MACRA) implement improved relevant policy frameworks and legislations to enforce service providers help people get high quality affordable services.

Though acknowledging that MACRA has now taken a right path in terms of engaging with consumers, he emphasized that implementation of policy frameworks and legislations that makes MACRA responsive regulatory body and considers views and concerns of the public on mobile service providers would be necessary to end mess in the mobile telecommunication sector.

“Normally issues of Tax government does not consult anybody, government is trying to raise money from wherever it can raise. And they will decide and pounce on any product that they think they can raise money on. So the idea that they went on to the mobile services is an education that they decided to do so, and is something that may be they are now regretting that they did and we are hoping that because they are the listening government they might want to reverse that because it is not helpful at all and not is progressive but retrogressive in nature.”

“So am positive that let’s not get worried about that tax alone there are so many issues in communication that we should be worried than 10%.” He said 

He therefore mentioned the strengthening of regulatory body Malawi Communication Regulatory Authority (MACRA) as the best remedy in the trashing out the mess in the communication sector which is reaping much its customer.

“Once we have done that with the regulator and the regulator being able to monitor and influence change it can help a lot than just 10% increment but that tax is retrogressive.” 

“The key one is improving the policy frame work that MACRA has and their piece of legislation we need to make sure that their act is clear of what they can do. And it has all the frameworks to make them do the work that they are doing."

But Kapito has hailed MACRA for introducing initiatives that makes it stay closer to the public. He said that is a step forward that must be encouraged and seen also happening in the policy framework.