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Mobile money rates in Cote d'Ivoire: The Arm Wrestling

Mobile money agency in Abidjan, Ivory Coast (Files).

(CIO Mag) – On the one hand, the tax administration affirms the determination of the Côte d'Ivoire State not to increase the cost of living by passing on consumers, the new taxes of 7.2% collected from 1st January 2019 in mobile money transactions. On the other hand, mobile phone companies, driven by the desire to preserve their financial balance, apply proportionally revised tariff scales, without prejudice to the request of the Telecommunication Constable which requires the immediate termination of this decision.

The risk to the consumer that has become so vulnerable is that the divergence of views between tax authorities and telecommunications operators may persist. Both parties are determined to support the shock.

They are already subject to specific taxes for mobile telephone companies (telecommunications tax, ICT development tax, taxes on support for artistic creation), they perceive the increase in the rates of money transfer for mobile money " One of the logical consequences of imposing these services "This is in any case what said Gertrude Koné, executive director of the Union of Telephone Companies of Ivory Coast (Unetel) in an interview on Minute Eco.

" You are a company, you realize a volume of business, you have taxes of consumption that apply to you, what will you do? When calculating the final price of your product or service, it is clear that you will take these taxes into account "The executive director argues. One way to say that there has never been a matter of fiscal optimization, but to preserve the interests of all players of the Money Money value chain.

Tax justice

Obviously, the application of these new taxes only to companies that issue electronic money (EME) made by mobile companies add more sulfur to the embers. Today, the business of mobile money transfer is no longer preserved by telecommunications operators. Many financial and microfinance institutions also benefit from the incredible growth of the industry. " Are they affected by this provision? It looks like no. In this case, there is clearly a problem of fiscal impartiality ", Notes Gertrude Koné.

Although Unetel is determined to maintain its position, Koné does not exclude the consequences of this decision on financial inclusion. " Without a doubt, there will be a deceleration of the transactions. However, beyond discouragement, one must see the impact on financial inclusion. The mobile phone came up as one of the key tools to facilitate the banking of the populations She said.

Anselme AKEKO

On the same subject

Tax on mobile financial services: "The Ivorian government intends to withdraw this project," Jean-François Le Bihan (Gsma)

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