06 October 2021
The Tanzanian government has lowered the amount of tax on mobile money imposed in July.
On August 31, it reduced it by 30% the tax which used to range from TSh10 to TSh10,000 (US$0.0043 to US$4.31). Depending on the amount of the transaction, it will now range from TSh7 to TSh7,000. In addition to the reduction in the amount of the fee, the government has also obtained a 10% reduction in mobile money rates from telecom operators.
In a statement, the Ministry of Finance and Planning said that “the government believes that the decision will bring relief to the people and enable them to raise funds” to implement various development projects. “These funds will be used to finance the construction of schools, social housing, and investments in health care, among other things,” said Job Ndugai, speaker of the National Assembly, August 19, in Dodoma, during a conference of teachers with disabilities.
The government’s downward revision of the tax on mobile money follows the concern it caused among the population after it came into force July 15.