Starlink to Face Same Taxes as Local Internet Providers – Govt

Government confirms no tax exemptions for Starlink

by Ikeoluwa Ogungbangbe
Starlink Zimbabwe

KEY POINTS


  • Starlink will face the same taxes and regulations as local ISPs.
  • Starlink’s launch raises hopes for better rural internet access in Zimbabwe.
  • Six local companies have been approved as Starlink kit resellers.

Zimbabwe’s government has announced that Elon Musk’s satellite broadband service, known as Starlink, will not be given preferential treatment for taxes or regulations.

Starlink began operations in the country earlier this month. The government explained that like every other local internet service provider who started its operations in the country would be taxed. This comes at a time when the government is in the process of increasing the level of fair competition between local and international internet service providers.

Same rules for everyone

During a media conference, it was evident from Zimbabwe’s Minister of Information and Communication Technology, Tatenda Mavetera’s stand that Starlink will be subjected to the local laws. According to Mavetera, “when it comes to taxes, there is no difference”.

The government wants them to take the same regulatory requirements as the local ISPs, especially in terms of offering better, reliable connectivity. Mavetera also said that any service provider within the country, including Starlink, that will not contribute to meeting the set internet standards will be penalized.

Starlink’s role in expanding access

Starlink was developed by Musk’s SpaceX company to deliver internet connection where the infrastructure is insufficiently developed. This is appealing since it would help Zimbabwe, in particular, where other rural areas experience low connection quality.

To date, many people have high expectations that Starlink will inject the much-needed internet service in these underserved regions. So far, six domestic firms, namely TelOne and Dandemutande, have been certified as official kit suppliers to Starlink to assist in its service delivery across the nation.

Embracing new technologies

According to NewsDay, Information Minister Jenfan Muswere echoed the government call on the reports, said there was a need for the nation to embrace various technologies for development.

Due to the rapid technological innovation, Muswere said Zimbabwe has to be receptive to new technologies like satellite internet to enhance its communication technologies.

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