Tuesday, Aug 3, 2021
HomeBusinessEconomyTanzania makes U-turn on its new mobile money transaction taxes

Tanzania makes U-turn on its new mobile money transaction taxes

Tanzania makes U-turn on its new mobile money transaction taxes

Tanzania is considering revising its newly mobile money transaction excise duty following widespread public outcry over the high charges.

In June this year, the Tanzanian government amended the Electronic and Postal Corporation Act (CAP 306) by imposing new taxes on all mobile money transactions in a bid to raise revenue collections by Tsh 1.254 trillion to partially finance her Tsh36.68 trillion budget for the 2021/22 financial year.

Tanzania’s Minister for Finance and Planning Dr Mwigulu Nchemba announced on Monday that President Samia Suluhu has heard the public uproar protesting the new taxes on mobile money transactions.

According to the finance minister, President Suluhu has directed formation of new taskforce by his Ministry to revisit the amendments.

Also Read:

  1. Schools reopen in Tanzania as gov’t plans to set up vaccine manufacturing plant
  2. Kenya’s budget surpasses that of Tanzania, Uganda combined
  3. Kenya, Tanzania start implementing measures to ease trade barriers

“I urge Tanzanians to remain calm as the government works on the matter…. Their complaints have reached the President and she is concerned about people’s cries. She has instructed that we should work on the complaints,” said Dr Nchemba.

In what seems to be an indication of Tanzania’s government to fall back on the levy, Dr. Nchemba noted that President Suluhu has been personally touched by people’s cries.

Besides complaints from the people, the country’s mobile service providers have also recorded a significant decline in revenues in the wake of the new taxes.

Tanzania’s telecommunication companies have said the move by government was a threat to survival of the country’s mobile service providers.

FOLLOW US ON:
Faulu Bank sets asid
Magoha warns varsity
Rate This Article: