Zambia’s three mobile phone operators have increased mobile tariffs after government imposed an additional 5 percentage point hike in excise duty on airtime in the 2014 national budget.

The excise duty has been increased to 15% from 10% in the 2013 national budget.

MTN, Airtel and Zamtel have; however, reacted to the increase by in turn boosting the cost of prepaid airtime by 5%. 

The increase in tariffs has been announced by both the GSM Operators Association of Zambia and the Zambia Information and Communication Technology Authority (ZICTA).

GSM Operators Association of Zambia chairman Abdul Ismail said the upwards adjustment in tariffs by operators came into effect on January 1, 2014.

“As service providers in the country, we are required by law to collect excise duty on behalf of the Zambian government. So the upward adjustment on airtime came into effect on January 1, 2014,” Ismail said.

But the Zambia Consumer Association has said the increase will affect consumers and the commercial sector because high communication costs only increase the cost of doing business in the country.

The association has called on the Zambian government to review the 5% hike in excise duty for airtime as it claims the move does not match the quality of services offered by the country’s operators.

Allegations of poor quality of service have previously been levelled against mobile operators in Zambia.