DR Congo Scraps Mobile Device Registration Tax

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The DRC government has said it will scrap the contentious device registration tax, effective March 2022. The country first implemented the device registration program in 2020 to help combat fraud and counterfeit devices.

The Mobile Device Registry (RAM) tax requires customers to register their International Mobile Equipment Identity (IMEI) devices with the ARPTC (Post and Telecommunications Regulatory Authority). 

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Tax

All mobile devices on Congolese territory must pay a monthly fee ranging from US$0.17 for 2G devices to more than US$1.17 for 3G and 4G devices during a six-month period under the new arrangement. The funds are collected by the regulator, which has blocked the number of subscribers who have failed to register or pay.

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Between 2019 and 2020, the number of mobile connections in the Democratic Republic of Congo increased by over one million, according to datareportal. Civil society organizations have expressed concerns that this trend would reverse as a result of the country’s new mobile device tax.

In a statement criticising the RAM, the non-profit group Rudi International stated, “This decree thus adds a sixth tax benefiting the Regulatory Authority of Posts and Telecommunications of Congo to the five others it already imposes on operators in its sector.”

RAM critics have further accused authorities of using the tax to rob consumers and that the government has not been transparent about the levy or plans for fundraising.

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According to a study conducted by the firm Ernst & Young as part of an investigation of the potential benefits of a more effective tax system for the DRC’s mobile phone sector, taxes is also a barrier to digital inclusion in the DRC.

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
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