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{
    "id": 64377,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/64377/?format=api",
    "text_counter": 130,
    "type": "speech",
    "speaker_name": "Mr. Raila",
    "speaker_title": "The Prime Minister",
    "speaker": {
        "id": 195,
        "legal_name": "Raila Amolo Odinga",
        "slug": "raila-odinga"
    },
    "content": "The tariff war amongst the providers is, therefore, intended at defending territory on the one hand for Safaricom and to expand territory on the other hand for its competitors. Mr. Deputy Speaker, Sir, according to the KRA, VAT and Excise Tax on airtime collection declined by 37 per cent and 22 per cent, respectively in the fourth quarter of financial year 2009/2010 as compared with the third quarter of the same year. This trend could translate into reduction of up to Kshs5 billion in tax revenue by the end of financial year 2010/2011. Recent trends indicate a growth of 2.8 per cent of Excise Duty on airtime. However, mobile telephone usage has increased by 243 per cent. There is more usage due to increased affordability. The penetration of mobile telephony has also increased tremendously. The lower tariffs have reduced the cost of doing business. The World Bank estimates that a 10 per cent increase in penetration in mobile telephony corresponds to 0.6 per cent in the Gross Domestic Product (GDP). Reduced tariffs are encouraging network migration, which is a key factor in establishing a competitive mobile telephony market."
}