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Taxing mobile phone transactions in Africa: Lessons from Kenya

Taxation on mobile phone-based transactions and on airtime has been introduced in Kenya and is spreading to other African countries.

Some countries in sub-Saharan Africa view mobile phones as a booming subsector easy to tax due to the increasing turnover of transactions and the formal nature of such transactions by both formal and informal enterprises.

The increasing tax burden on the subsector and the consumers, though, has raised concerns that the massive gains made in financial inclusion in developing countries made possible by…

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