The Citizen (Dar es Salaam)
Damas Kanyabwoya
7 July 2009
Voucher vendors continued to sell mobile phone airtime at higher prices yesterday despite a crackdown that was mounted in Dar es Salaam.
Confrontations ensued in the city as people believed to be mobile firms' agents tried to confiscate pre-paid vouchers from vendors who were selling them at higher prices.
The agents refused to speak to reporters who witnessed the fracas. "These people are threatening to confiscate our vouchers unless we sell at prices indicated on the vouchers but that is not possible because we are buying them at higher prices," a vendor called Mwadawa Juma told The Citizen.
She said airtime of all mobile companies is being sold by wholesalers at the face value of vouchers leading them to retail airtime by Sh100 more. There has been confusion in the market since last week after some retailers hiked prices of airtime vouchers by between Sh50 and 200.
The vendors said yesterday that wholesalers increased prices from last week following the decision by the government to start charging the Value Added Tax (VAT) on airtime on the basis of the face value of vouchers instead of the previous system that was based on wholesale prices.
Mobile phone companies said that although the new charging system increases the operation costs of distributors it does not justify any hike.
"What has happened is that Tanzania Revenue Authority has changed its VAT charges.
The changes in VAT charges by TRA have caused a slight increase in the distribution costs of wholesalers but the changes should not affect the retail prices of our airtime vouchers,"Vodacom Tanzania spokesperson Mwamvita Makamba said yesterday.
The vendors said the crackdown should start from the dealers' agents who are responsible for the increment. "Why are they coming for us, we are not crazy to increase prices just like that.
We buy vouchers at higher wholesale prices and if we are to get a small margin we also have to increase prices as well," Mr Sanga Msigwa, a vendor at Posta said. Some mobile companies have issued statements urging their customers to buy vouchers at the old rates.
Vodacom Tanzania said yesterday that it is holding meetings with its wholesalers to ensure their agents do not hike the prices. Ms Makamba said customers have complained that the increase in prices was done without prior notice.
Vodacom is the leading mobile company in Tanzania with over six million subscribers out of the about 13 million cellphone users in the country.
"At the moment Vodacom is holding meetings with its wholesalers to try and find a solution to the problem."
On Sunday, Zain also said that it had not increased the price of its airtime vouchers. Its corporate affairs manager Beatrice Singano said in a statement that Zain customers should continue buying airtime at the same old rates. The two companies have about 10 million subscribers.
"We have not increased our wholesale prices and we have an agreement with our dealers to sell them according to the agreed price,'" Ms Singano noted in the statement.
She said Zain was aware that airtime of various networks was being sold at Sh5100 instead of Sh5000, Sh2100, instead of Sh2000 and Sh550 instead of Sh500.
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