The government of Benin Republic has introduced new levies on telecommunications operators with two taxes relating to the use of telecom services by consumers.

New “Social Media Tax” in Benin

Patrice Talon, the president of the Benin Republic, adopted a decree on July 25, 2018. It prescribes levies on telecom operators based on taxes related to use of OTT services and the internet.

As stated on the Internet Sans Frontiers website, the contribution of the consumption of electronic communications services does not only affect Over-The-Top (OTT) applications and social networks. It also hits the voice, SMS and Internet services.

They are subject to a tax of five percent of the price excluding tax, also levied each month by the service provider.

An Alarming Trend in Africa

The ISF promotes the free flow of information, defends digital freedoms and fights against censorship on connected networks. It criticised the tax decision because it contradicts the Benin government’s ambition. The government wants to make the digital economy a strategic sector for economic recovery. Instead, it increases the cost of Internet access, which is already very high in the country. It has the effect of tripling the price of the consumption of Internet packages for the poorest consumers in Benin.

Paradigm initiative has also issued a statement against the tax. According to Tope Ogundipe, Paradigm Initiative’s Director of Programs, they condemn this alarming trend in Africa countries. A growing number of states in Africa have begun to impose taxes on the use of various digital communication services.

The Zambian government recently announced the creation of a new online tax where phone calls made over the Internet will be subject to a daily levy.

Moreover, earlier this year, the government of Uganda forged a policy to impose taxation on social media platforms to curb what is referred to as ‘Lugambo’ (gossip) by the President on platforms such as Whatsapp and Facebook.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) is pressuring the Nigerian Telecommunications Commission for similar practices to be adopted in Nigeria. According to ALTON, the activities of the OTT service providers are eating into the revenue telcos used to enjoy.

Slowing Down ICT Development in the Region

According to Qémal Affagnon, West Africa Coordinator of Internet Sans Frontières, regulations to tax the use of messaging applications or social networks are tariff barriers to free expression, which must be denounced. To put the burden of this funding on the shoulders of users is an unfair choice that violates freedom of expression and threatens everyone’s access to a free and open Internet.

This tax clearly only focused on financial gain and undermines the current efforts to bring accessibility of ICT to African countries.

Internet Penetration in Benin currently stands at 33.1 percent, in Zambia, it is 41.2 percent, in Uganda it is 42.9 percent, and in Nigeria is 50.2 percent. Internet technology has slowly been developing over the years and this move by the government actively stifles its development. It also violates the recommendations of the International Telecommunications Organization regarding the taxation of electronic communications.