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Zimbabwe mobile network operators have revealed that the continuous review of U.S dollar charges are a result of the macroeconomic environment, bandwidth costs, taxes and liquidation costs.
In a presentation to the ICT Parliamentary Portfolio Committee held yesterday, operators argued that tariffs are not denominated in U.S dollars rather they are set using the ongoing official exchange rate.
“There are no tariffs denominated in foreign currency, therefore there has not been a review of data tariffs denominated in USD. However, certain legal and economic factors in the macroeconomic environment have resulted in the volatility of ZWL-USD equivalent value for clients opting to settle in local currency. USD equivalent are set using the ongoing official exchange rate,
“However, the need for review when transacting in local currency is inevitable in line with local and global inflationary movement in business costs as results of the war in Ukraine. Covid-19, sanction imposed on Zimbabwe lack on Foreign Direct Investment (FDI) and local capitalization,”
According to some of the statistics revealed by operators before the portfolio committee in terms of taxes, for every $1 made by the operators they remain with 31.5% the rest goes to USF at 3.5%. 10% excise duty , 15% VAT , liquidation cost 20% and 20% corporate tax then another fraction that goes to the license fees.
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