Democratic Republic of Congo authorities have sealed the offices and seized the accounts of the local branch of South Africa’s Vodacom over a tax dispute, the company said in a statement.
“On 6 and 7 December 2022, agents of the General Directorate of Taxes (DGI) presented themselves at our technical, commercial and administrative offices and proceeded with the installation of seals,” Vodacom said in a statement.
The dispute relates to a tax audit for the period 2016-2019 by the DGI, which resulted in an adjustment of US$243-million in July 2021, the statement said. The amount was later reduced.
Vodacom has disputed the decision and lodged an appeal with judicial authorities last month, it said, but the DGI has initiated actions to forcibly recover the sum.
DRC authorities could not immediately be reached for comment.
The DRC has been in a long-running dispute with all its phone operators over its efforts to impose more taxes without allowing companies to increase prices for consumers.
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The government adopted a new tax imposing levies on every phone call, text message and megabyte of data in March.
The tax replaced another levy that was withdrawn a month earlier after sparking public protests and a parliamentary inquiry into where the revenue was going.
Vodacom said it had taken measures to ensure the continuity of its services and was using every legal recourse. — Sonia Rolley, (c) 2022 Reuters