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Electronics Production | May 25, 2009

Nokia: VAT evaders to blame for rise in counterfeit handsets in East Africa

The Finland-based mobile phone giant is blaming VAT-evaders for the rise in counterfeit handsets in East Africa.

Counterfeit Nokia handsets from Asia are on the rise in East Africa; entering the market without VAT payment and without important Nokia features, IDG reports. The company has stepped up efforts in Uganda (20%), Kenya (16%) and Tanzania (18%) to have VAT scraped. This in turn would increase the number of mobile phone users - which in turn results in lower prices.
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