An analysis of Social Media use
in The SADC region - 2014 - 2020

Following a short initial period where the total tax-take may be lower than if
the status quo is maintained, in the medium to long term, tax levels rise exponentially above the base case. For all the countries in our sample, penetration
increases, and in most cases very significantly, after the removal of non-VAT
taxes. For the majority of countries analysed in our sample, after a period of
only three to four years, as Figure 24 shows, the removal or reduction of all
non-VAT mobile-specific taxation becomes positive.
Figure 24: Removal or reduction of all non-VAT mobile-specific taxation

Source: Own chart from GSMA 225 data

Special Taxation: Case of Zambia
In August 2018, the Zambian government introduced a 30 Ngwee226 (about
USD 0.03c) 227a day tariff on internet phone calls. Cabinet has since approved
the issuance of a Statutory Instrument (SI) that will facilitate the introduction of the tariff to be charged through mobile phone operators and internet
providers. The government’s argument was that internet calls through platforms such as Viber, WhatsApp and Skype “threaten the telecommunications
industry and jobs” in licensed telecom companies such as Zamtel, Airtel and
MTN”.228 This also serves to show how social media has revolutionarised the

225 https://www.gsma.com/publicpolicy/wp-content/uploads/2012/03/taxgrowthsubsaharanafrica.pdf
226 https://www.lusakatimes.com/2018/08/13/zambia-slaps-a-30-ngwee-a-day-tariff-on-internet-phonecalls/
227 https://www.theeastafrican.co.ke/business/Zambia-seeks-USD22-million-in-tax-on-internet-/25604713400-cmhq5lz/index.html
228 https://cipesa.org/2018/08/zambia-introduces-daily-tax-on-internet-voice-calls/

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https://zimbabwe.misa.org

Select target paragraph3