WhatsApp does not pay tax in South Africa: MTN

Over-the-top technologies such as WhatsApp and Skype don’t pay taxes in South Africa, says mobile network MTN.

By - January 26, 2016 Share on LinkedIn
Whatsapp logo on phone

Over-the-top (OTT) technologies such as WhatsApp and Skype don’t pay taxes in South Africa, says mobile network MTN.

MTN’s corporate service executive, Graham de Vries, made this claim in a presentation at a Parliament meeting on Tuesday. The meeting discussed possible regulation for OTT services in South Africa.

Parliament’s Portfolio Committee on Telecommunications and Postal Services set up the meeting after the CEOs of MTN South Africa and Vodacom last year said that OTT services don’t contribute financially to local networks.

After presentations from the likes of the executive director of Research ICT Africa Professor Alison Gillwald and the Independent Communications Authority of South Africa (Icasa) at the meeting, MTN’s de Vries addressed MPs and stakeholders.

“It’s government’s prerogative to regulate around security, tax,” de Vries told Parliament.

He then further posed questions about security of personal information that OTTs have access to.

OTTs have ‘no obligations’

The MTN executive’s comments came after Icasa CEO Pakamile Pongwana also posed questions at the meeting around OTTs.

“OTTs have no licence; no obligations,” Pongwana said at the meeting.

The Icasa CEO noted that while OTTs stimulate demand for data, they have “no contribution to network investment” and that “operators have no mechanism to recover costs”.

He also said that OTT providers can’t be monitored or intercepted

The OTT meeting in Parliament is expected to continue until 17:00 on Tuesday.

Fin24

More on MTN

MTN destroyed lots of its value: analyst

Cell C is the best, and MTN is the worst: HelloPeter

Share your thoughts

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Do you have a solar power installation at your house?

View Results

Loading ... Loading ...

More News

4 new elements added to periodic table

Periodic table

Four new elements have been added to the periodic table after being approved by the International Union of Pure and Applied Chemistry.

Please Call Me negotiations stalled after Makate court application

Please call me on phone

Please call me “founder” Nkosana Kenneth Makate has stalled negotiations with Vodacom by going back to the Constitutional Court.

Amazing tech specials from Makro and Game

Sale Deals

This weekend you can start your Christmas shopping with specials on tech products from Makro, Game, and Dion Wired.

Internet Solutions to buy MWEB

MWEB logo on router

MWEB has informed customers it has entered into an agreement for Internet Solutions to buy the company.

Free MyBroadband Newsletter
×