After hearing a plea from mobile manufacturers who conduct business in Kenya, the Kenya Revenue Authority responded by persisting that manufacturers prove a value added tax (VAT) will have a negative affect on mobile users and the industry, Standard Digital reported.

Commissioner-General John Njiraini spoke at a tax forum on Monday and urged the creators of the petition to clarify how no tax on mobile devices will be beneficial.

“Users end up spending more on airtime than they originally spent purchasing handsets, and airtime is subject to both VAT and excise tax … growth [in mobile phone penetration] has largely been due to a decline in the cost of airtime,” Njiraini said in the Standard Digital report.

Companies including iHub, Samsung, Microsoft, Nokia, Huawei, Intel and GSMA released a joint statement stressing the idea that the 16 percent imposed VAT on phones will stifle growth both in the mobile and tech realm. In addition, VAT will encourage heightened retail costs. As Kenya is a tech leader in Africa, a mobile phone tax may ultimately broaden the continent’s digital divide, according to Standard Digital.

Ventures Africa quoted the manufacturers’ statement which read, “Kenyan developers are recognized among some of the most innovative thinkers, tackling some of Africa’s biggest challenges through technology …. We should empower and support these young people, not undermine their creativity with a tax.”

Originally, President Kenyatta was scheduled make a decision in regards to passing the VAT bill on August 19. Just over a week later — after receiving opposition from mobile manufacturers — the Kenya Revenue Authority has decided to further hear the views  of additional manufacturers who present claims based on heavily researched data.

According to Telecompaper, exempting the mobile phone industry from VAT in 2009 encouraged the 25 percent mobile penetration increase and allowed Kenyans to delve deeper into mobile technology.