Telecommunications companies expected elimination of VAT on phones and the reduction of excise duty on airtime, which is at 12 per cent to encourage penetration and further growth of the sector. However, Finance Minister Syda Bbumba neither reduced nor abolished taxes in the 2010/11 financial year budget. Warid telecom's Chief Executive Officer Madhur Taneja spoke to Faridah Kulabako about the challenges facing the industry.