Tax removal on cell phones will transform communications sector

Friday’s announcement by President Irfaan Ali that taxes will be removed from cell phones will transform the communications sector.

This is according to a joint statement yesterday from three of the country’s telecommunications providers: GTT, Digicel and ENet.

They said that the announcement was a “significant step” towards improving information access and bridging the digital divide in the country.

“This announcement will transform the communications sector by enabling greater access to pursue educational opportunities, conduct business, and foster personal growth. As our society becomes increasingly connected, it is essential to remove barriers that hinder access to vital technological resources. By exempting taxes on cell phones, President Ali has taken a progressive stride towards bridging the digital divide and promoting inclusivity in all of Guyana. This initiative will undoubtedly result in a multitude of positive outcomes for the people of Guyana, including improved educational prospects, expanded economic opportunities, and enhanced communication networks across the nation, especially our rural and hinterland communities”, the joint statement said.

As telecommunications providers in Guyana, they said that they will continue to work with the government and other stakeholders to facilitate the seamless implementation of this tax exemption. They added that customers can look forward, in the near future, to revised prices reflecting the removal of taxes on all cellular devices. These changes will be communicated to the public in tandem with the government’s removal  of taxes on such products.

GTT, Digicel, and ENet say that they look forward to continued efforts to promote digital equity, as they build a platform to deliver the best services and solutions for Guyana.  

When he made the announcement, President Ali was speaking at a Local Government Election campaign meeting in New Amsterdam.

He stated: “We have continuously said that we want to bridge the divide in this country, we want to ensure that there is an equitable platform on which people can transform themselves, one of the important things about the future is the use of technology.”

Stressing that a cellphone is an integral part of the transformation of a country and a device that people use daily for personal and business purposes, he said with the government already removing the Value Added Tax on data “we are now going to remove all the taxes from phones in the country so that you can buy it tax-free.”

He announced to the screaming crowd “All the tax that is on the device will be removed.” This he said will be effective from Monday.